Fisker Halts EV Production for Six Weeks, Warns It May Not Survive

The future looks increasingly uncertain for electric vehicle startup Fisker. The company announced today it is pausing production of its Ocean SUV for the next six weeks and has expressed "substantial doubt" about its ability to continue operating. The news comes as the company seeks a crucial investment from a major automaker to stay afloat.

A Cash Crisis

Fisker is facing a severe cash crunch, with reports indicating it has only $121 million in the bank. This situation has forced the company to take drastic measures.

• Production Pause: The six-week halt is intended to manage the company's inventory of unsold vehicles and conserve cash.
• Seeking a Partner: Fisker is in active negotiations with a large, unnamed automaker for a potential investment and manufacturing partnership, which is seen as its last lifeline.
• Going Concern Warning: In a regulatory filing, the company officially warned that it may not have sufficient funds to meet its obligations over the next 12 months.

A Tough Market for Startups

Fisker's struggles highlight the brutal reality of the current EV market. Intense price competition from established players like Tesla and Ford, combined with the enormous cost of scaling up vehicle production, has put immense pressure on startups like Fisker, Rivian, and Lucid. The coming weeks will be critical in determining whether Fisker can secure the funding needed to survive.