Fisker stock tumbles further after pausing production

© Reuters. Fisker (FSR) stock tumbles further after pausing production

Fisker (NYSE:) stock is down again Monday, falling a further 12% after the company said it would pause production for six weeks starting the week of March 18.

The electric vehicle company also announced a new financing commitment from an existing investor, providing up to $150 million of gross proceeds.

The company said the financing is being provided by the holder of its 2025-dated convertible notes and will be organized in four tranches, although it is subject to certain conditions, including the filing of Fisker’s 2023 Form 10-K.

Fisker’s production pause will allow it to align inventory levels and progress its strategic and financing initiatives.

At the time of writing, Fisker stock is trading at $0.1528, down 12.5%. The struggling company’s shares hit a new low of $0.1400 last week.

Fisker stock is down more than 91.5% in 2024 and over 97% in the last 12 months.

In a regulatory filing, the company said it did not make a required interest payment of approximately $8.4 million payable in cash on March 15, 2024, and that it had just $121 million in cash and cash equivalents as of March 15, $32 million of which is restricted or not immediately accessible.

“There is substantial doubt about our ability to continue as a going concern,” stated Fisker in the filing. “We expect to require additional cash in 2024 for debt service and investment needs, and our ability to generate cash from operating activities will depend on our ability to transition to a dealer model and sell vehicles. Accordingly, we have concluded there is substantial doubt as to our ability to continue as a going concern.”

The company said it can only continue operations if it raises new capital. Due to its failure to meet the continued listing requirements, there is also no assurance that it will be able to maintain an active trading market for its common stock on the NYSE or any other exchange.