Fisker taking steps towards bankruptcy filing: Report

Fisker is reportedly on the brink of filing for bankruptcy, just two weeks after disclosing to investors the company may run out of cash within the next year.

According to a report by the Wall Street Journal, citing sources familiar with the plans, Fisker has hired financial advising firm FTI Consulting and law firm Davis Polk to help with a possible bankruptcy filing.

Following the report, shares of Fisker have dropped more than 44% in after-hours trading.

Earlier this month Fisker announced during the Q4 and 2023 earnings call that it may not be able to meet its financial obligations over the next 12 months without securing further equity or debt financing. Fisker CEO Henrik Fisker stated the company was in negotiations with an unnamed automaker for additional funding and also as a development and manufacturing partner. 

Later reports suggested that automaker was Nissan.

Fisker launched the Ocean SUV, its first electric vehicle (EV), in 2023, ending the year delivering 4,929 vehicles to customers in North America and Europe. The company produced 10,193 Ocean SUVs last year, through its manufacturing partner Magna Steyr, at their facility in Graz, Austria.

The Ocean’s debut has been marred by software glitches, two investigations by the NHTSA, and quality control concerns. The company has also slashed prices in an attempt to increase demand.

The automaker was expecting to deliver over 20,000 vehicles in 2024, and bring to market several new EVs over the next few years, including the Pear compact SUV and Alaska pickup truck, although with these latest developments those plans are in serious doubt.

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