This week in EVs: Fisker jumps, Tesla falls | Pro Recap
Here is your weekly Pro Recap of the past week's biggest headlines in the electric vehicle space: Fisker makes a deal; Tesla hits a sales speed bump; and Polestar shrinks.
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Fisker Inc (NYSE:FSR) witnessed a remarkable turnaround on Monday, experiencing a 15% surge in mid-day trading. The rally was ignited by the announcement of a strategic agreement with a 2025 convertible notes investor.
According to an 8-K filing with the SEC, Fisker and the investor mutually agreed to lift all liens on intellectual property upon finalizing an agreement with a strategic OEM partner. This move is expected to pave the way for Fisker to actively seek collaborations and partnerships.
The revised agreement not only eliminates financial covenants related to restricted cash but also marks a significant reduction in outstanding debt associated with the 2025 convertible notes. As of January 19, 2024, Fisker successfully decreased its debt to $324.5 million, a substantial $185.5 million reduction from the initial aggregate issuance amount of $510.0 million. This reduction was achieved through the conversion of a portion of the 2025 notes into equity by the investor.
Fisker's Chairman and CEO, Henrik Fisker, expressed satisfaction with the outcome, stating, «I am pleased that we were able to reach an agreement with one of our investors that will provide increased flexibility and better position us to execute on potential strategic business deals.»
Additionally, Fisker unveiled plans to sell the remaining inventory of nearly 5,000 vehicles manufactured in 2023 by the end of the first quarter. The company's new dealer-partner model has attracted interest from over 100 potential dealers
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