Toronto, Ontario — In this weekly economics report, Fisker announces its plan to pause EV production amid bankruptcy rumours and other financial decisions from the company, while Ontario Premier Doug Ford teases a “banner year” for the industry, thanks to jobs in the EV supply chain.
Fisker’s finances
Electric vehicle maker Fisker is pausing EV production for six weeks, the company announced Monday. It also aims to raise up to US$150 million in funding by selling convertible notes with a ten percent original issue discount.
The notes were purchased by CVI Investments, which also has the option to convert the debt into ownership in Fisker. As of the latest update, Fisker had about $120.9 million in cash and other easily accessible funds—less than what the OEM had at the end of last year.
Fisker also decided to skip a payment on an investment—something the automaker can do without penalty for 30 days—and admitted that it failed to submit its annual report on time.
The stock hit a record one-day plunge after rumours circulated that Fisker was seeking bankruptcy. March 14 saw shares of Fisker drop 51.9 percent to a record low of US$0.15. As of Monday at 10 a.m. E.T., shares of Fisker traded at US$0.16, down more than 75 percent in the last month.
The automaker also reiterated that it remains “in talks” with a large automaker regarding a potential transaction, but failed to name the company.
Rumours in Ontario
Ontario Premier Doug Ford has seemingly promised that 2024 will be a “banner year” for the province’s automotive industry, particularly due to new attention on spinoff jobs from EV production and battery manufacturing.
Last Monday the Premier told attendees at an event in Windsor, Ont., that he was “really excited” about the future when asked about the current rumours of the Federal government’s potential $18-billion expansion to Honda’s Alliston, Ont., plant.
“It is just an incredible company and we’re so, so fortunate to have them,” Ford said. “It’s going to be a banner year, that’s all I can tell you, I’m really, really excited … this year is going to be a phenomenal year, just stay tuned.”
Meanwhile, Vic Fedeli, Ontario Minister of Economic Development, Job Creation and Trade, told Global News that the government’s current focus in on the support needed to support two EV battery manufacturing facilities currently under construction in Windsor and St. Thomas, Ont.
