Fisker Future Shaky as NYSE Halts Trading of Shares

Last week, Fisker Inc. (NYSE: FSR) shares were halted on the NYSE after the stock exchange announced that the auto-manufacturer’s stock would be delisted because of low price levels. This comes after the company gave a warning in its latest earnings report that it may not have enough funds to survive 2024.

According to a filing Fisker made with the United States Securities and Exchange Commission, delisting will require it to pay off debts due in 2025 and buy back bonds due in 2026.

Earlier this month, the EV company had announced that it was in talks with a major auto manufacturer. The talks with Nissan, the major auto manufacturer, focused on the company’s electric pickup, the Alaska. These talks seem to have ceased, however, according to its latest regulatory filing.

In its filing, the company revealed that it did not have adequate financing sources or cash reserves to satisfy amounts due under 2025 or 2026 notes, which could adversely affect its business, financial condition and results of operations.

Fisker was founded in 2016 by auto designer, Henrik Fisker, who was also its CEO. Its offerings included the Fisker Ocean electric SUV, which was produced in Austria under Magna Steyr. In 2023, reports show that 10,000 vehicles were made, but only about one-half of the vehicles had been delivered to consumers as per the company’s earnings report.

Henrik Fisker had assumed that outsourcing manufacturing would decrease the company’s risks because it eliminated the need to invest in manufacturing facilities.

In February 2021, Fisker’s shares were trading for as much as $28. At the time, the company was valued at almost $8 billion. Now, however, the auto maker’s shares are going for less than 10 cents a share. This has significantly decreased the company’s market capitalization to under $50 million.

It doesn’t help that the Fisker Ocean was recently the subject of a negative review by Marques Brownlee, a tech personality on YouTube. On the popular video-sharing website, the American YouTuber reviewed the car, titling it as the worst car he’d ever reviewed. In his description, he told viewers not to purchase this version of the Ocean.

Thus far, the video has received more than 4.5 million views and greatly affected the automaker’s stock, which has plummeted since its release.

With greater competition from established auto manufacturers such as Tesla, Kia, Hyundai, General Motors and Ford, which all provide similar electric SUVs, the time may have come for Fisker to close up shop.

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