Fisker Automotive Misses Interest Payment, Pauses Production Amid Bankruptcy Speculation
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Fisker Automotive Misses Interest Payment, Pauses Production Amid Bankruptcy Speculation

Fisker Automotive Ocean on country road
  • Fisker Automotive revealed plans to halt production of its electric vehicles for a six-week period.
  • The company arranged to generate gross proceeds of up to $150 million through the sale of convertible notes.
  • This financing move comes after the company missed an interest payment, putting its future in question.

Fisker Inc. underscored the challenges facing smaller players in the electric vehicle sector, revealing plans to halt production of its electric vehicles for a six-week period. This strategic pause is part of Fisker Automotive’s efforts to manage a cash crunch, coinciding with its decision to seek additional funding of up to $150 million through the sale of convertible notes.


This financing move comes in the wake of the company missing an interest payment, in significant news from Fisker. The company noted a production hiatus for its Fisker Ocean SUVs in January, with its partner Magna’s Austrian unit managing to produce around 1,000 vehicles from Feb. 1 to March 15. The first Fisker Ocean release date was June 23, 2023, when the company made its first deliveries to customers in the United States with the delivery of 22 Oceans.

Fisker Grew Inventory While Still Struggling Financially

In 2024, Fisker Automotive continued to push the boundaries of its electric vehicle production, delivering approximately 1,300 vehicles. Despite the manufacturing pause earlier in the year, the company maintained a significant inventory value, tallying over $200 million in completed vehicles, showcasing not just a recovery but a considerable stockpile for future sales.

Fisker arranged for the issuance of senior secured convertible notes, carrying a 10% original issue discount, aimed to generate gross proceeds of up to $150 million. These financial instruments were sold to CVI Investments through Heights Capital Management.

Fisker’s decision to withhold the $8.4 million interest payment due on March 15, 2026, for some of its convertible notes, despite possessing sufficient liquidity, was a strategic move aimed at entering discussions with investors. By the end of this period, Fisker’s cash reserves stood at $120.9 million, a notable decrease from the $395.9 million reported at the year’s end.


Fisker also announced discussions with a prominent automotive manufacturer about a possible partnership. Speculation around these discussions, fueled by a Reuters report, suggested that Nissan might be the undisclosed automaker contemplating an investment, hinting at a significant strategic collaboration that could afford Fisker a lifeline.

In February, the company publicly flagged “substantial doubt” regarding its ability to continue as a going concern — a jarring acknowledgment that highlighted the gravity of its financial situation.

Fisker Dealership Opened in December, First EV Entry was Fisker Automotive in 2007

In December 2023, a Fisker dealership was opened in Vista, California, north of San Diego.

Founder Henrik Fisker is notable in the EV industry for founding Fisker Automotive in 2007. It produced the Fisker Karma, one of the world’s first production luxury plug-in hybrid electric vehicles.

Fisker Automotive declared bankruptcy in 2013. Fisker Automotive’s Karma vehicle design, as well as its facility in Delaware, were purchased by Chinese auto parts conglomerate Wanxiang, which then founded Karma Automotive. A short time later, Henrik Fisker founded Fisker Inc. in 2016.



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