fisker (FSR) said late Thursday it was in “strategic” discussions with major automakers, reacting to reports that it was moving toward filing for bankruptcy. FSR stock soared early Friday after losing more than half its value on Thursday.
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Fisker shares plunged 52% to 15.5 cents on Thursday. wall street journal The U.S. EV startup and potential Tesla rival has hired a restructuring advisor to assist with a potential bankruptcy filing, the company reported.
After the market close, Fisker said he doesn’t typically comment on “market rumors and speculation,” but that he “often” works with outside advisors.
Additionally, “Fisker is focused on raising additional capital and forming strategic partnerships with major automakers,” the EV maker said.
Of course, there is no guarantee that such negotiations will bear fruit.
The EV startup last month said it could run out of cash this year and issued a “going concern” warning. In late February, Fisker postponed releasing its full 2023 financial results, citing a shortage of accountants.
Fisker has struggled with stalling EV demand and continued production hurdles faced by many EV startups. In June, Fisker finally began deliveries of its first EV, the Ocean SUV, in the United States.
Fisker shares rose 17% to 18 cents Friday morning, down from overnight highs but only recouping some of Thursday’s losses.
EV startup struggles
Tesla CEO Elon Musk recently commented: Rivian Automotive (Riven) could go bankrupt within six quarters. Rivian’s production and deliveries are far stronger than Fisker’s, but a downturn in its 2024 production outlook has put a planned Georgia plant on hold.
Luxury EV manufacturer lucid motor (LCID) recently revised its production outlook for 2024 significantly lower than expected due to weak demand and prices.
Tesla is a highly profitable EV giant, but profits are sluggish as deliveries are expected to decline sharply in the first and fourth quarters despite continued price cuts and incentives around the world. .
Rivian stock soared 3.6% on Friday, helped by Piper Sandler’s upgrade. RIVN stock fell 8.7% to 10.69 on Thursday, marking its fourth straight year of declines after recently rebounding from record lows.
Lucid stock rose 3.2% early Friday. The stock fell 6.1% to 2.66 on Thursday.
Tesla stock rose slightly on Friday. Shares fell 4.1% to 162.47 on Thursday, a 10-month low. TSLA stock fell nearly 35% in 2024, making it the worst performer in the S&P 500 index.
Wells Fargo downgraded the EV giant’s sell rating before Wednesday’s open. Late Wednesday, UBS lowered Tesla’s price target from 225 to 165. Both analysts joined others in lowering their first-quarter delivery targets and full-year profit forecasts.
Cathie Wood’s Ark Invest announced new purchases of Tesla stock Thursday night.
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