It's all about funding Ocean EV SUV production.
Having discovered that Los Angeles-based electric car company Fisker was quietly holding talks with potential investors about issuing an IPO through a sale to "a so-called blank-check acquisition company," a deal has now been made. Fisker and Spartan Energy Acquisition Corp. have announced a $2.9 billion deal that's expected to be finalized by the end of this year. The agreement will see Fisker merge with Spartan, which is an affiliate of the private equity firm Apollo Global Management.
As a result, Fisker will receive $1 billion in gross proceeds, which will be used to bring the Fisker Ocean EV SUV to production by the end of 2022.
The Ocean was revealed earlier this year at the Consumer Electronics Show in Las Vegas. Fisker claims the Ocean will be "the world's most sustainable vehicle, including extensive use of environmentally friendly and recycled materials."
Fisker previously announced the Ocean will carry a starting price tag of $37,500 before the federal tax credit. "Our funding, product plans and brand development actions are on course," said Henrik Fisker. "Prototype vehicles are expected to start durability testing by the end of this year, and we continue to make significant progress on the development of our sales and service proposition."
Speaking of which, Fisker will offer customers a unique leasing model. The lease will require a $2,999 down payment prior to delivery and monthly payments will begin at $379, which will cover all repair and maintenance costs, and a pick-up and delivery service. Fisker also says the leases will be flexible, meaning lease periods can range from just one month to several years.
The mileage limit will be 30,000 miles per year, a very generous figure compared to nearly all other vehicle lease agreements that typically limit annual mileage to 10,000 miles.
"Today, the realization of the world's first digital car company took another major step forward, advancing our mission to commercialize the world's most emotional and sustainable vehicles, while upholding our vision of a clean future for all," Fisker continued. "We are excited to partner with Apollo, a world-class financial institution who brings deep industry expertise, extensive global relationships and a shared commitment to ESG. This vote of confidence from investors, coupled with our exciting progress on the development of our first vehicle, lays out Fisker's path to 2022 and beyond."