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Key Takeaways
- EV maker Fisker has reportedly hired a firm to advise on restructuring possibilities, including bankruptcy.
- In its recent earnings report, the company warned it may not be able to stay in business and was in discussions with another automaker about a possible deal.
- The company’s stock is down nearly 95% in the past year.
After earlier issuing warnings about its ability to meet expenses, electric vehicle (EV) maker Fisker (FSR) is reportedly looking to file for bankruptcy,
Two weeks ago, the EV maker issued warnings that its current resources weren’t enough to cover its costs, raising doubts that it could stay in business. Now, the Wall Street Journal is reporting the company has hired a firm to help with restructuring that could include bankruptcy.
In its most recent earnings report, Fisker revealed a quarterly operating loss of $103.5 million. The company at the time said it was in talks with a “large automaker” about transactions that could include investment or joint development of an EV platform.
Fisker failed to establish its direct-to-consumer model in North America and Europe, its CEO said, preventing the company from delivering its Ocean SUV as quickly as it had projected.
“There were a number of unanticipated challenges, including rising interest rates, finding enough skilled labor, and identifying appropriate real estate locations to make the DTC model function effectively,” CEO Henrik Fisker said in the earnings report.
The company shares plummeted nearly 95% over the last year. The company reported it received a delisting notice from the New York Stock Exchange last month because its stock has been priced at less than $1 for more than 30 consecutive trading days.
Fisker stock was down nearly 45% in after-hours trading.