Fisker, a new company that makes electric cars, has been having some problems lately. When the company sent out a “going concern” warning earlier this month, it said it wasn’t clear that it could keep running as it was (that is, without a big partner or a lot of new cash). The Wall Street Journal also said yesterday that the business has hired professionals to help it get ready to file for bankruptcy.
Davis Polk is a law company, and FTU Consulting helps people with their money. Fisker did not want to comment on the story with MotorTrend or the WSJ.
Even though the firms have jobs, the new carmaker might not go bankrupt, but it doesn’t look good. When the news came out, Fisker shares dropped as low as $0.14, which is 56% less than on March 13. The shares were worth about $20 in 2022. The WSJ says the company could be taken off the New York Stock Exchange.
Fisker has made a number of mistakes lately. One example is a company that put too much faith in a direct-to-consumer business model that worked out differently than planned. Instead, it is trying to build a standard network of franchised dealers while also keeping a lot of stock on hand. Its finances are affected by the fact that it can’t move created pieces. The unclaimed cars are worth about $500 million, according to the Wall Street Journal. The company needs the money badly.
Some people still think Fisker and Nissan are talking about working together on the Alaska truck. However, an official agreement still needs to be reached. For now, the Fisker Pear EV is going to fail because the company needs more money.
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