Fisker Inc.’s potential deal with a large automotive manufacturer has fallen through, according to a filing with the U.S. Securities and Exchange Commission. While never confirmed by executives, the OEM was widely reported to be Nissan.
The breakup comes amidst a challenging time for the startup, which is rapidly running out of cash. The company, which posted a going concern notice last month, was set to receive a $150 million cash infusion from an existing investor. Closing that deal was contingent on the negotiations being ongoing, however executives are looking into asking to waive the closing condition or altering the terms of the deal.
In addition, Fisker said in the filing that it is seeking “strategic alternatives” to raise the needed money, such as restructuring, repurchases, and potential asset sales. For now, trading shares of the company has been halted and executives intend to have investors vote on a reverse stock-split proposal on April 24.
Lucid’s Cash Infusion
Meanwhile, things are looking up for Lucid Group as it scored a $1 billion investment from Saudi Arabia’s Public Investment Fund (PIF) through its affiliate Ayar Third Investment Co. The firm will buy $1 billion in convertible preferred stock, which can be converted into about 280 million shares (at today’s $3.06 stock price, that conversion would net the fund $857 million, but that value could rise or fall sharply as Lucid’s stock moves). The PIF has already invested billions in Lucid and owns a 60% stake in the company.
CEO and CTO Peter Rawlinson said he and his team were “extremely pleased” by the investment, which will go towards general corporate purposes. As of December 31, 2023 the company had $4.3 billion in cash, which executives said was enough to fund Lucid into 2025.
Canoo’s Arrival Acquisition
EV van and pickup maker Canoo Inc. announced it had closed its purchase of advanced manufacturing assets from failed EV company Arrival Automotive. The purchased assets, which include robots, PLC controllers and dispensing systems, will be shipped in 20 containers to Canoo’s Oklahoma manufacturing facility.
This isn’t the first Arrival purchase Canoo has made: in January, the company announced it had purchased nearly all of Arrival’s new and like-new resources at an 80% discount. The new purchases will help expand upon Canoo’s manufacturing capabilities and lower costs for 2025 production as it transitions to automated processes. According to the release, purchase lead times will be shortened 40%, capital expenditures will be reduced 20%, with lower unit costs to follow.
