• Fri. Apr 19th, 2024

Fisker’s Stock Plummets as Company Considers Bankruptcy Option

BySamantha Johnson

Mar 14, 2024
Fisker’s Stock Plummets as Company Considers Bankruptcy Option

After experiencing a stock plunge of more than 40% in after-hours trading on Wednesday, concerns about Fisker’s ability to remain in business have escalated among investors. Reports from the Wall Street Journal revealed that Fisker had hired restructuring advisors to potentially work on a bankruptcy filing. Although the company did not comment on the report, it had previously warned that it might not have enough funds to remain operational for another year.

In its fourth-quarter earnings report from February, Fisker disclosed doubts about its ability to sustain operations in the future. Discussions with existing investors were initiated to secure additional funding, and plans were made to lay off 15% of the workforce to reduce costs.

Fisker, a company that sells the Ocean electric SUV, has a unique business model in which the manufacturing of its models is entirely outsourced. The Ocean is produced in Austria by Magna, a company with a history of producing vehicles for prestigious brands such as Mercedes-Benz, BMW, and Jaguar. Despite Magna producing over 10,193 Fisker SUVs last year, only a fraction of those were delivered to customers within the calendar year.

Challenges faced by Fisker further worsened when a popular American YouTuber, Marques Brownlee, posted a critical video on Fisker’s Ocean model titled, “This is the Worst Car I’ve Ever Reviewed.” These criticisms led to a significant drop in the company’s stock value after the video was released. Henrik Fisker’s second car company, Fisker, had previously faced bankruptcy in 2013 after its first car company, Fisker Automotive, filed for bankruptcy following inventory losses caused by Hurricane Sandy.

By Samantha Johnson

As a content writer at newszkz.com, I delve into the realms of storytelling, blending words to paint vivid narratives that captivate and inform our readers. With a keen eye for detail and a passion for research, I craft compelling articles that resonate with our audience. My love for words drives me to explore diverse topics, ensuring that each piece I create not only educates but also entertains. Join me on this journey as we navigate the ever-evolving landscapes of news and knowledge together.

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