According to the Wall Street Journal, Fisker has reportedly hired “restructuring advisors to assist with a potential bankruptcy filing.”
Fisker has been in trouble recently, with the company facing the possibility of being delisted due to a slump in its stock price. The company also indicated in its most recent quarterly report that there were “significant doubts” about its ability to continue operating and that it was seeking outside investment. Even though deliveries in the fourth quarter increased by 300%, this is quite an achievement from one quarter to the next.
And not long after Fisker’s quarterly report, news broke that outside investment may have come in the form of “advanced” talks with Nissan, which is reportedly exploring a partnership on electric trucks. Last year, Fisker unveiled a future pickup truck called the Alaska, which happened to look a lot like the Nissan Frontier.
Fisker also recently announced two other future vehicle designs, the compact Pear and the Ronin sports car.
Fisker claims it profits from sales of the Ocean SUV thanks to contract manufacturing through Magna Steyr (read our review here). This means lower margins because a portion of the margin goes to the manufacturer, but Fisker does not have to invest in multibillion-dollar factories like Rivian or Tesla, so it lowers upfront costs. It’s also helpful.
But the company’s operating and direct sales model remains costly, and Fisker is proving difficult to scale. Fisker recently announced that it would be withdrawing from the model and hiring dealer partners to help sell its inventory, which was estimated to be worth about $530 million as of March 1.
But today, Fisker suffered another blow. That came in the form of a report in the Wall Street Journal that claimed the company had hired financial advisor FTI Consulting to assist with a potential bankruptcy filing. Fisker (FSR) stock is currently down 45% in after-hours trading following this report.
Electrek’s view
The Journal sources its information from “people familiar with the issues,” and while the outlet generally does good business reporting, its content also needs to be considered. history of Spreading climate disinformation.After all, it is owned by someone climate denierRupert Murdoch interfere with his news organization Press anti-environmental policy. For example, in the same article, the WSJ falsely claims that demand for EVs is “soaring,” even though EV sales continue to rise.
Despite this particular inaccuracy, there are still de facto troubles with Fisker, especially after a recent quarterly report that warned that Fisker may seek consulting. is completely believable.From our understanding, this means that Mr. Fisker inevitably We intend to file for bankruptcy, but are instead seeking an analysis of whether that is the most beneficial path forward. We’ll have to keep an eye on it and see what path the company chooses.
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