UPDATE 2-EV startup Fisker’s deal talks with massive automaker ends

(Recasts paragraph 1, updates shares in paragraph 2 and provides background all through)

March 25 (Reuters) – Fisker’s talks with a big automaker for a possible transaction has collapsed, the electric-vehicle startup mentioned on Monday, sending its shares plunging greater than 30% earlier than the bell.

Fisker didn’t title the automaker with which it was in talks.

Reuters had reported earlier this month that Nissan was in superior talks to spend money on the corporate, in a deal that might act as a monetary lifeline for the cash-strapped EV startup.

Earlier within the day, Nissan held an occasion during which it introduced a long-term marketing strategy, together with its EV technique, and mentioned it was in search of companions in the US.

Fisker had mentioned earlier this month it will pause manufacturing of its EVs for six weeks and lift as much as $150 million in funding by promoting convertible notes after lacking an curiosity cost.

The EV startup’s shares have cratered this yr, dropping greater than 90% of their worth, after it flagged going concern threat in February and paused investments in future initiatives till it secured a partnership with an automaker.

Fisker pivoted to a dealer-partner mannequin earlier this yr, after it delivered lower than half of the autos it made in 2023 attributable to logistics points. (Reporting by Zaheer Kachwala and Akash Sriram in Bengaluru; Enhancing by Shilpi Majumdar)

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