The WSJ reported that the EV startup has hired advisors to assist with a possible bankruptcy amid doubts about their ability to continue as a going concern
New storm clouds seem to be gathering over Fisker, as according to a report from the Wall Street Journal on Wednesday, the electric vehicle startup has purportedly enlisted restructuring advisors to explore the possibility of filing for bankruptcy.
Fisker recently laid their struggles bare as they used their 2023 financial report to reveal lackluster Ocean demand, “unexpected headwinds,” and a “number of unanticipated challenges.” The company also stated that 2024 would be “another difficult year” as they’re only expecting to deliver around 20,000 Oceans globally.
That’s a drop in the bucket and Fisker expressed a substantial doubt about their ability to continue as a going concern. This is because their “business plan is highly dependent on the successful transition to its new Dealer Partner model” and their “current resources are insufficient to satisfy its requirements over the next 12 months.”
More: Fisker Cuts Workforce By 15%, Looks To OEM Investment To Avoid Obliteration
Since its 2020 stock market debut via a SPAC merger with Spartan Energy Acquisition Corp., Fisker has experienced a dramatic decline in its share price. As of Wednesday’s close, the stock has plummeted over 97% to just 32 cents. Throughout the year, the company’s shares have consistently traded below $1, and on February 15, 2024, the New York Stock Exchange (NYSE) warned the electric startup that it may face delisting.
Given that bleak picture, the company announced plans to streamline operations and cut approximately 15% of its workforce.
The news wasn’t all bad as the company confirmed it was in negotiations with a “large automaker for a potential transaction, which could include an investment in Fisker, joint development of one or more electric vehicle platforms, and North America[n] manufacturing.”
That automaker was rumored to be Nissan, but it looks like the talks might not have panned out as The Wall Street Journal, citing sources familiar with the matter, is reporting that Fisker has hired advisors to assist with a possible bankruptcy filing.
Fisker declined to comment on the report to Reuters, but the move wouldn’t be surprising given the company’s dire straits. Of course, only time will tell what happens as the EV maker could potentially find a savior. That being said, this could also be Fisker Automotive Part Deux.