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EV startup Fisker (FSR) is pausing EV production for six weeks as its financial struggles worsen. Fisker looks to get its finances in order after failing to make an interest payment. The EV maker did get a commitment for up to $150 million in financing, but will it be enough?

Fisker is halting production as EV woes worsen

Fisker reiterated there is “substantial doubt” in its ability to continue operations after missing an interest payment.

According to an SEC filing on Monday, Fisker is pausing EV production for six weeks, starting immediately. The move is to “align inventory levels and progress strategic and financing initiatives.”

The EV startup was unable to file its annual report (10-K) due on March 15, putting it in default under its convertible notes due in 2025. Because of this, investors retain the right to convert the payable amount. The investors waived the right on Monday as Fisker works to file the report.

In addition, Fisker failed to make an interest payment of $8.4 million on March 15, 2024. The company has a 30-day grace period to make the payment before it goes into default.

Fisker-EV-production
Fisker Ocean electric SUVs (Source: Fisker)

Fisker said it “elected not to make the interest payment,” even though it currently has the liquidity to do so, as it looks to improve its financial situation.

The EV startup cash and equivalents dwindled to just $120.9 million (as of March 15, 2024) after making “significant payments” to suppliers. That’s down from $736.5 million at the end of 2022 and $325.5 million at the end of 2023.

Fisker-EV-production
Fisker Ocean (Source: Fisker)

Substantial doubt in its ability to continue

As of December 31, 2023, Fisker’s accounts payable were $182 million. However, Fisker expects more cash will be needed to pay debt and scale EV production.

Fisker will need to raise additional debt (or equity financing), partner with an OEM, or generate cash from vehicle sales to continue operations.

Fisker continues to seek funding through equity raises or partnering with an OEM. Earlier this month, reports suggested Fisker and Nissan were in “advanced talks” that could give the EV maker a financial lifeline (and an electric pickup). However, Nissan has since partnered with rival Honda.

Fisker Pickup
(Source: Fisker)

The company said it is “continuing negotiations with a large automaker” that could include an investment, joint EV platform development, and North American manufacturing.

Fisker did get a financing commitment from an existing investor worth up to $150 million, but that won’t be enough to fund operations long-term.

After producing zero vehicles in January, Fisker built about 1,000 from February 1 to March 15. The company sold about 1,300 cars in the first two months of 2024.

Fisker-EV-production
Fisker (FSR) stock chart over the past year (Source: TradingView)

Following the news, Fisker’s (FSR) stock is down over 11%. The company is facing a delisting from the NYSE exchange, with its stock price well below the required minimum of $1.00 per share. Fisker shares are currently around 0.115 per share, down 97% over the past year.

Fisker’s current vehicle inventory includes:

  • North America: 1,168 at parts, 11 in transit, 180 at sea, 2,140 in storage, and 171 produced but not delivered.
  • EU: 131 at port, 5 in transit, 72 at sea, 739 in storage, and 105 produced and undelivered.
  • Work-in-progress vehicles include 175 in North America and another 126 in the EU.

Electrek’s Take

Fisker’s journey so far has been anything but easy, but their ability to continue just got even more challenging. After failing to miss an interest payment, Fisker is pausing EV production.

It’s already struggling to make ends meet, and now it’s halting its primary revenue source. Fisker already has a ton of convertible notes ($1.2 billion) issued that will need to be paid back.

Without significant financial backing, likely from an OEM, it will be nearly impossible for Fisker to repay them.

To make matters worse, Fiker is likely to be delisted from the NYSE, making raising equity even harder.

What do you guys think? Can Fisker pull through? Let us know what you think in the comments.

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Tesla has yet to start testing its robotaxi service without driver weeks before launch

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Tesla has yet to start testing its robotaxi service without driver weeks before launch

Tesla has reportedly yet to start testing its robotaxi service in Austin without a safety driver behind the wheel – just weeks before the planned launch.

For months now, Tesla and CEO Elon Musk have been hyping the launch of “Tesla Robotaxi”, a Uber-like ride-hailing service powered by autonomous Tesla vehicles, starting with a launch in Austin, Texas in June.

We have extensively reported that this launch is disappointing compared to what Tesla promised for years: that all its consumer vehicles built since 2016 are capable of self-driving.

Instead, Tesla plans to build an internal fleet of “10-20” Model Ys and have them offer ride-hailing services in a geo-fenced area around Austin, Texas, helped by human teleoperations. This is very similar to what Waymo has been offering in other cities for years, specifically in Austin, for months now.

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Even with the significant downgrade in self-driving capabilities promised with this project, there are many doubts about Tesla’s ability to achieve the lesser goal.

That’s because the robotaxi service will be based on Tesla’s ‘Supervised Full Self-Driving’ program, which is currently achieving about 500 miles between critical disengagements fleet-wide, according to the latest crowdsourced data.

Tesla will be able to improve on that by optimizing a version for the geo-fenced area in Austin and it has been training its neural nets for that for months with vehicles going around Austin.

However, a new report now claims that Tesla has yet to start testing its service without safety drivers at the wheel – similar to Tesla’s public ‘Supervised FSD’. The Information wrote in a new report:

Elon Musk’s deadline for launching Tesla’s first robotaxi service, in Austin, Texas, is weeks away, but the company hadn’t started testing its cars without a human safety driver as of last month, according to an engineer close to the testing and a former employee. That’s a crucial step required before Tesla can launch the pilot service for customers.

For comparison, before launching its paid ride service in Austin, Waymo tested its vehicles with safety drivers in the area for 6 months and then without safety drivers for another 6 months.

Waymo has now taken over a significant market share of ride-hailing rides in the Texas capital, but it still has limitations; for example, it doesn’t drive on the interstate.

The report also mentions that Tesla has been working with local emergency services in Austin to develop intervention plans in order to avoid causing issues if its autonomous vehicles fail.

Electrek’s Take

This is the biggest softball goal. It’s a fraction of what was promised, it’s something that others have achieved before. It’s a punt created for Tesla to finally get a “win” in self-driving.

If they can’t even make it, it would be disastrous, but at least, I hope that it will finally open the eyes of many Tesla shareholders to the reality that Tesla is actually behind in autonomous driving and that Musk’s latest claims that Tesla will have “millions of robotaxi on the road” in 2026 are just the same as when he claimed it would happen in 2025, 2024, 2023, 2022, 2021, 2020, and 2019: corporate puffery.

My main concern now is for public safety. I have little hope of US regulators being able to stop Tesla considering Trump is firing anyone who got in Musk’s way after he gave him over $250 million.

If Tesla brings its cowboy approach to this, it could get bad quickly.

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Rivian CEO RJ Scaringe shares more detailed images of the R2’s Maximus drive unit

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Rivian CEO RJ Scaringe shares more detailed images of the R2's Maximus drive unit

The development of Rivian’s R2 validation builds continues to progress. We know so because the American automaker’s founder and CEO, RJ Scaringe, continues to pepper us with welcome updates with plenty of fantastic images. The latest post features the inner workings of Rivian’s Maximus drive unit, which will propel the upcoming R2 EVs when they hit the market next year.

Another day, another exciting social media update from RJ Scaringe. Nine days ago, the Rivian CEO shared a peek at the company’s new Maximus drive unit, designed to be more compact and efficiently built to help reduce cost-per-unit production.

Our only look was from outside the drive unit’s casing at the time, but it was exciting news nonetheless. As an encore, Scaringe posted photos of the R2 validation builds on a pilot line at the automaker’s facility in Normal, Illinois.

This evening, Scaringe took to Instagram and X once again to share a better look at the inner workings of the Rivian Maximus drive unit. Check it out:

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Rivian Maximus
Source: @RJScaringe/X

RJ shares more images of Rivian’s Maximus development

Rivian’s CEO posted the three images above, which showcase some interesting perspectives of the developing drive unit. As previously shared by Rivian, Maximus uses a new continuous winding technique that reduces the total welds per stator and thus the total overall cost of building each one.

For comparison, Rivian’s current Enduro drive unit requires 264 stator welds, while Maximus only needs 24. You can see the stator windings in the image above to the left. Scaringe shared excitement in the progress of the Rivian team’s Maximus drive unit as well as some insight in his post:

I love the packaging on Maximus — the drive unit for R2. It has a side mounted inverter that utilizes flat area at the end of the motor to minimize the length of bus bars, keeping them light and efficient. The large planar shape also allows all processing and power electronics to exist on a single printed circuit board.

The inverter chassis closes out the oil cooled motor cavity and seamlessly routes coolant from the power modules to the drive unit’s heat exchanger with no extra parts.

Overall, the inverter part count is reduced by 41% relative to Enduro and structural inverter lid saves more parts and fasteners by also serving as the drive unit mount. I love this design efficiency. (heart emoji)

Looks fantastic, RJ. We can’t wait to see the visual progress of the R2 you share next!

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EV sales are up, Tesla sales are down, and new electric Toyota goodness

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EV sales are up, Tesla sales are down, and new electric Toyota goodness

On today’s thrilling episode of Quick Charge, we’ve a huge spike in global EV sales and a huge dip in Tesla deliveries. Plus a whole bunch of news from Toyota, including an updated bZ that’s just a bit better than before … but is a bit better going to make a big difference?

We’re also on track for more than 1 in 4 new cars sold this year to be electric, with a whole lot more hybrids coming in to make up the difference and drive fuel demand down to a new yearly low. All this, plus the top 5 cheapest EVs to insure when you hit the play button.

Prefer listening to your podcasts? Audio-only versions of Quick Charge are now available on Apple PodcastsSpotifyTuneIn, and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.

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Drop us a line at tips@electrek.co. You can also rate us on Apple Podcasts and Spotify, or recommend us in Overcast to help more people discover the show.


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