American electric car startup Fisker has halted production at Magna in Graz

Production will be halted for six weeks. Fisker owed $8.4 million in interest.

Fisker, a cash-strapped American electric car startup, has halted production of its Ocean model. Production at contract manufacturer Magna in Graz will be halted for six weeks, the company announced on Monday. Fisker previously owed $8.4 million in interest on convertible bonds. The company said it deliberately decided to default in order to buy time to negotiate with investors.

There will already be enough money available for interest. However, the company's cash balance has shrunk to $120.9 million as of Friday, less than a third of what it had at the end of last year.

Financial difficulties

New convertible bonds worth up to $150 million, which Fisker sold at a discount to Polish investment fund CVI Investment, are now expected to bring new money into the coffers, according to mandatory documents filed with the US Securities and Exchange Commission. second).

Fisker has been in financial trouble for some time and is preparing for possible bankruptcy, according to a report. It is now said that negotiations are currently underway with the automaker about the collaboration. According to informed sources, it is a Nissan from Japan. It was recently reported that an agreement could be signed later this month. The company, founded by Danish car designer Henrik Fisker, had long been aware that selling cars was becoming more difficult than originally planned. Added to this is the overall cooling demand for electric vehicles. (APA/Reuters)