Fisker's talks with a large automaker for a potential deal have collapsed, it said on Monday amid growing uncertainty for the cash-strapped startup that last week paused electric-vehicle production.

Trading in the shares of the company, which did not name the automaker with which it was in talks, has been halted pending an announcement.

The termination of talks has led the company to search for strategic options, including in- or out-of-court restructurings, and capital markets transactions, the company said.

"I can't put it if it is next week or next year, but it is inevitable," Thomas Hayes, Chairman at hedge fund Great Hill Capital, said on the growing chances of Fisker likely to file for bankruptcy protection.

Reuters had earlier this month reported that Japanese automaker Nissan  was in advanced talks to invest in the startup.

But earlier in the day, Nissan announced a long-term business plan, including its EV strategy, and said it was looking for partners in the United States.

Fisker said it will be unable to meet a closing condition related to its attempt to raise up to $150 million by selling convertible notes after missing an interest payment.

The $8.4 million payment for some notes due in 2026 was supposed to be paid on March 15, but the startup said it did not pay despite having enough liquidity as it wanted to use the 30-day grace period to talk to investors about its capital structure.

Raising funds has been hard for loss-making EV startups, which have little by way of revenue as they struggle to ramp up production and deliver to customers amid strong competition and a tough economy.

Separately, Fisker said it would ask investors to vote on a proposal for a reverse stock-split at a shareholder meeting on April 24, as it looks to maintain compliance with the New York Stock Exchange's listing norms.

Fisker's shares have lost more than 90% of their value this year, after the startup flagged going-concern risk in February and paused investments in future projects until it secured a partnership.

It pivoted to a dealer-partner model earlier this year, after delivering less than half of the vehicles it made in 2023 due to logistics issues.

Fisker has pursued a different strategy from Tesla and other EV startups by relying on auto supplier Magna to assemble its vehicles rather than invest the capital to build and operate a factory on its own. CEO Henrik Fisker called it an "asset light" strategy. Reuters