Japanese legacy automaker Nissan is in “advanced talks” with American electric startup Fisker for a potential $400 million investment for an electric pickup truck development, Reuters reports, citing two people familiar with the negotiations.
Nissan to build Fisker Alaska e-pickup
According to the report, Nissan is exploring a potential investment with the struggling startup Fisker in exchange for access to its electric pickup truck.
Nissan is reportedly considering to invest over $400 million in Fisker’s electric truck platform. In addition, it is also planning to produce Fisker’s upcoming Alaska e-pickup truck at one of its local assembly plants in the US in 2026, according to one of the sources.
In exchange, Nissan will gain access to Fisker’s platform to produce its own electric pickup truck model.
Fisker is in dire need of investment
As per the sources, Nissan and Fisker could close the deal as early as this month. This investment is very crucial for the American startup after reporting a $400 million loss in 2023.
Fisker’s disappointing Q4 2023 results revealed that its remaining cash on hand only amounts to less than $400 million, prompting it to admit that it can only continue operations past next year with a significant cash injection.
Fisker confirmed that it was in negotiations with a “large automaker” about an investment that may save the company from its current financial struggles.
“Nissan is in advanced talks to invest in electric vehicle maker Fisker (FSR.N), in a deal that could provide the Japanese automaker with access to an electric pickup truck while giving the struggling startup a financial lifeline, according to two people familiar with the negotiations.”
Reuters
Mutual benefits
As mentioned, the deal could be a lifeline Fisker is waiting for to overcome its intensifying struggles in the electric vehicle industry.
The American startup has been struggling to sell its currently only offering, Ocean EV. On Thursday, it announced plans to lay off 15% of its workforce. In effect, it decided to halt investments in all of its new projects until it found a new production partner. Therefore, Nissan’s potential investment could really aid Fisker in continuing its operations past next year. The Japanese automaker’s manufacturing expertise can also enable Fisker to ramp up its production without compromising build quality.
In exchange, Fisker can offer its innovative battery tech and its platform to the table. These technologies can aid Nissan, which has been struggling to advance in the electric vehicle industry after pioneering the low-cost Leaf EV.
Fisker’s stock declined by over 50% following the earnings announcement. It slightly recovered after the potential Nissan partnership report, currently trading at a valuation of $295 million.
