Fisker, the electric vehicle manufacturer, has reportedly enlisted restructuring advisers to navigate potential bankruptcy proceedings, as reported by the Wall Street Journal.
The company has faced significant challenges recently, with its stock facing potential delisting due to low share prices. In its latest quarterly report, Fisker expressed doubts about its ability to sustain operations, citing the need for external investment. Despite a remarkable 300% surge in deliveries in Q4, the company continues to face financial uncertainty.
Following its quarterly report, news emerged of potential investment discussions with Nissan, focusing on a partnership for electric trucks. Fisker unveiled the “Alaska” pickup truck last year, bearing a striking resemblance to the Nissan Frontier.
Fisker also announced plans for two new vehicle designs: the compact Pear and the Ronin sports car.
The company claims profitability on sales of its Ocean SUV, attributed in part to its contract manufacturing approach through Magna Steyr. This method reduces margins, as a portion is allocated to the manufacturer, but also minimizes initial costs by avoiding billion-dollar factory investments, as seen with Rivian and Tesla.
However, despite these efforts, Fisker faces substantial operational costs and challenges with its direct-sales model, prompting a shift towards dealer partnerships. The company estimated its car inventory to be valued at approximately $530 million as of March 1.
Today, Fisker’s financial woes deepened with reports from the Wall Street Journal that it has engaged FTI Consulting as a financial adviser to explore potential bankruptcy options. In response, Fisker’s shares (FSR) plummeted by 45% in after-hours trading.
