Fisker Stock Plummets After Report Of Possible Bankruptcy
The Fisker Ocean is sinking fast.
Following the electric automaker’s admission during its recent earnings call that it might not have enough money to last another year, the Wall Street Journal reported that it has begun preparations for a possible bankruptcy filing.
Fisker has not commented on the report, which said it has hired FTI Consulting as a financial consultant along with the Davis Polk law firm.
Fisker is $1 billion in debt and made just $273 million in sales last year.
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It’s currently sitting on $500 million worth of vehicles in stock, according to the report.
The California-based company contracts out manufacturing of its Ocean SUV to Magna, which builds it in Austria.
It built 10,193 Oceans last year, but Fisker was only able to deliver 4,789 to customers worldwide.
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During the earnings call it projected that it would deliver 20,000 to 22,000 vehicles in 2024, but also that it suspended development of all future products due to its cash crunch.
Fisker said it was in talks with a “large automaker” about some sort of collaboration that would get it back on track, and reports pointed to Nissan being interested in the proposed Alaksa pickup, but nothing has been announced.
Fisker’s stock dropped by half on Thursday to its lowest value ever following the Wall Street Journal report.
In the midst of all of this, the Ocean was the subject of a review by YouTuber Marques Brownlee, who called it “The Worst Car I’ve Ever Reviewed” in a video that has been viewed 4.5 million times so far.
His main issues were with faulty software that Fisker said it would be addressing soon.
A subsequent video of a Fisker representative reaching out to the used car dealer who lent the car to Brownlee for the review also went viral, racking up millions of views.
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