• Fisker shares plummet
• Fisker hires advisors for possible bankruptcy filing
• PR disaster after bad review for Fisker’s electric SUV
At the beginning of March, the stumbling electric car manufacturer Fisker shocked the stock market with a “going concern” warning and announced that there were “significant doubts about the company’s ability to continue as a going concern.” The company will need to obtain “additional equity or debt financing” over the next 12 months, although there is no guarantee that “Fisker will be successful in these efforts,” it said. Fisker cited the “currently depressed market for electric vehicles” as the reason for the significant financial difficulties.
A few days later, investors were able to gain hope because, according to a report by the Reuters news agency, Nissan’s entry could potentially avert Fisker’s bankruptcy. Negotiations between the two companies are already well advanced, it is said. But now investors received the next piece of bad news.
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Bankruptcy application is being examined
As the Wall Street Journal reports, citing people familiar with the matter, Fisker is considering filing for bankruptcy and has already hired restructuring consultants for this purpose. Accordingly, the financial consulting company FTI Consulting and the law firm Davis Polk should help with the possible submission of such an application.
There has been no comment from Fisker himself. It is therefore unclear whether the end is actually imminent or whether a savior can still be found.
Negative review burdened
Fisker, which produces its cars at Magna in Graz, recently came under considerable pressure after the influential YouTube-Star Marques Brownlee had criticized the Fisker Ocean electric SUV: “This is probably the worst electric car I’ve ever driven,” the technology professional said in a review video.
The situation was made worse by the manufacturer’s reaction, which can only be described as a PR disaster: a Fisker engineer contacted the dealer who had provided Brownlee with a loaner car for his test. During the course of this conversation – which was recorded and later uploaded to TikTok – the engineer admitted that there were still quite a few problems and that they still needed to tweak things quite a bit.
This is how Fisker shares react
Investors reacted with shock to the latest report from the Wall Street Journal. Fisker shares, listed on the NYSE, ultimately lost 51.94 percent to $0.1549.
Editorial team finanzen.net
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