Fisker's bailout talks with large automaker end

Nissan had been in advanced talks to invest in the company, in a deal that could act as a financial lifeline for the cash-strapped EV startup, reports said.

Troubled EV startup Fisker Inc. said on Monday talks with a large automaker for a potential transaction has been terminated.

Shares of the company plunged 29 percent to 8 cents in early trading.

Nissan Motor Co. was in advanced talks to invest in the company, in a deal that could act as a financial lifeline for the cash-strapped EV startup, according to numerous reports earlier this month. Fisker has not identified the "large automaker" involved in the talks.

Some in management at Nissan had reservations about a possible tie-up with Fisker, one top-level official said this month, asking not to be identified revealing private discussions to Automotive News.

The American startup seems mostly in need of financial support, which a recovering Nissan is not in an ideal position to provide.

Meanwhile, Nissan's immediate priorities are improving the efficiency of its own supplier network for the shift to electrification, the official said. The need for partnerships in procurement was expected to be a main topic in Nissan's midterm plan unveiled in Japan on Monday, the official added.

Sourced from Automotive News‍