Fisker rejects short-seller’s allegations; says no financial institution assure with associate Magna By Reuters
© Reuters. FILE PHOTO: The Fisker Inc. emblem is displayed on a display on the ground of the New York Inventory Trade (NYSE) in New York Metropolis, U.S., November 22, 2022. REUTERS/Brendan McDermid
(Reuters) – Electrical-vehicle maker Fisker Inc stated on Thursday that it doesn’t have a financial institution assure with manufacturing associate Magna Steyr, the Austrian unit of Magna Worldwide (NYSE:) Inc, in response to a report by short-seller Fuzzy Panda Analysis.
Fisker stated it intends “to take rapid and aggressive motion to deal with the false and deceptive claims made by Fuzzy Panda Analysis,” including that it owns the mental property for the Fisker Ocean Platform.
Shares of the EV maker rose 0.5% in prolonged commerce, after falling almost 5% following the short-seller’s report.
In a report disclosing an unspecified brief place earlier on Thursday, Fuzzy Panda Analysis stated that Fisker’s entry to its funds is restricted by financial institution ensures that set a mininum money steadiness.
The short-seller added that just about the entire $825 million Fisker has in money “is tied up” in ensures to Magna Steyr.
The ensures embrace Fisker paying for Magna’s tooling prices in addition to manufacturing margins and direct manufacturing prices, the brief vendor stated, citing interviews with former workers.
Magna didn’t instantly reply to a request for remark.
Fisker is the newest goal of Fuzzy Panda Analysis, which has beforehand issued experiences on EVgo Inc, Workhorse Group Inc and now bankrupt Electrical Final Mile Options.
Fuzzy Panda Analysis additionally stated that Fisker has been promoting shares to lift money and pay bills as a substitute of funding working losses utilizing its money steadiness.
“We predict Fisker’s asset-light enterprise mannequin might be higher described as liability-heavy,” it stated.
Fisker, which went public in 2020 via a blank-check merger that valued it at $2.9 billion, began manufacturing its Ocean SUV at Magna Steyr final month.
Fisker’s shares have misplaced about half their market worth this 12 months amid a wider market selloff and as investor sentiment sours in the direction of loss-making electric-vehicle startups.