Fisker automotive is currently experiencing a major decrease in production and is in discussions with a major automaker while also focusing on trying to maintain its business operations in the face of significantly declining sales.
The troubled electric-vehicle manufacturer announced the temporary halt on Monday as part of its ongoing efforts to prevent bankruptcy.
This break will enable the company to adjust its inventory levels and concentrate on strategic and financing endeavors.
According to a recent report, Fisker has taken the step of hiring restructuring advisers to help with a potential bankruptcy filing. This move comes after the company expressed concerns about its ability to remain in business.
Fisker announced on Monday that it has successfully obtained $150 million in financing through the sale of $166.7 million worth of notes to an existing investor at a discounted rate of 10%.
The company stated that the funding would only be granted if certain conditions were met, such as submitting its overdue annual report to regulators and ongoing discussions with a carmaker regarding a collaborative manufacturing agreement.
Fisker’s available funds decreased significantly, dropping from $325 million at the end of December to $89.1 million as of March 15.
The company is currently in talks with a major automaker for a potential deal, which may involve an investment in Fisker, collaboration on electric vehicle platforms, or a manufacturing agreement in North America.
Shares of Fisker experienced a significant decline of 12% during Monday’s afternoon trading session. Their value has decreased by approximately 90% this year.
The startup based in Manhattan Beach, Calif. has faced challenges with slow sales growth, resulting in approximately 5,000 unsold vehicles by the end of the previous year.
Fisker is currently facing financial challenges, similar to other electric vehicle startups. Lordstown Motors and Arrival, two companies in the electric vehicle industry, have recently filed for bankruptcy protection.
[READ MORE: Singer Eric Carmen Dead at 74]