Fisker Up For Sale And Four Automakers Are Apparently Interested

Troubled EV startup Fisker has had a terrible start to the year, but there may be a glimmer of hope: founder and CEO Henrik Fisker reportedly told employees last week that the automaker was in talks with four automakers who are interested in potentially initiating a buyout. As reported by Business Insider, an all-hands meeting on Thursday was the setting as the CEO updated staff on the company’s current position.

Fisker did not reveal the names of its potential saviors or how long it may take for them to make their decisions, but time is of the essence. A Fisker regulatory filing revealed that Fisker is running low on cash and “believes that its available liquidity will not be sufficient to meet its current obligations.”

Low Offers

Mr. Fisker revealed in the same meeting that an offer to buy the company had been made but that it was not “sufficient.” At present, the company has a market capitalization of just under $31 million, with stocks trading at around 5 cents a share at the time of writing. It’s unclear how much the company is hoping to raise, but any savior would be wary of overpaying for a company whose products are facing several reliability issues.

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Among these issues are doors that may not open, roof spoilers that may become detached, sudden loss of power, braking issues, and more. Nissan was initially expected to swoop in to save Fisker, but that deal reportedly crumbled. While we love the design and ideas of the Fisker Ocean, nobody wants a car they can’t rely on – even at prices below $25,000.

Deeper Issues

It’s one thing to rush a vehicle to market while there are still significant teething issues, but Fisker has made things worse for itself through what appears to be poor administration. A recent report revealed that Fisker delivered cars without payment, losing checks and misfiling receipts, ultimately having to humbly reach out to customers asking for payment confirmations. Fisker can’t rely on new customers, either, because more than 40,000 order reservations have reportedly been canceled. It’s difficult to predict how much longer the company will be around, but without a lifeline from a much bigger automaker being thrown soon, we doubt Fisker can survive much longer.

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The hits keep coming as the EV startup struggles to survive.