Fisker To Raise $340M In Convertible Debt To Boost Operations And Battery Pack Capacity

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Fisker, the California-based electric vehicle (EV) manufacturer, has announced plans to sell $340 million in convertible debt, according to a recent regulatory filing. The company anticipates net proceeds of $296.7 million, after accounting for a 12% issue discount and other fees. The notes are due in 2025.

Funding Fisker’s Future

Fisker intends to use the funds to support its general corporate operations and to add an additional battery pack line to “support growth” in 2024 and beyond. The company also plans to allocate funds for capital expenditures and the development of future products.

This move comes as Fisker seeks to increase production of its first EV amid a tightening capital environment for startups. Fisker is among several EV companies that went public via a merger with a special purpose acquisition company (SPAC). While many of these EV SPACs have faced financial difficulties, Fisker has largely managed to avoid these issues.

Overcoming Production Bottlenecks

Despite its relative success, Fisker has encountered production bottlenecks that have impacted its bottom line. The company reported earlier this month that it produced 1,022 Ocean SUVs in the second quarter, falling short of its own expectations by several hundred vehicles. The shortfall was attributed to a shortage of components from its sub-suppliers. Fisker is now working with all suppliers to ramp up to the required volumes.

A Promising Outlook

Fisker’s decision to raise funds through convertible debt signals its commitment to overcoming current challenges and driving future growth. As the company continues to navigate the complexities of EV production, its focus on enhancing operations and expanding battery pack capacity could position it well for success in the evolving EV market.