Los Angeles, California – Fisker, an electric vehicle manufacturer, is facing financial challenges as it reportedly hires restructuring advisors to navigate a potential bankruptcy filing. The company’s stock prices have plummeted, raising concerns about its financial viability, despite a significant increase in deliveries in the last quarter.
Amidst these struggles, Fisker has been seeking outside investment and exploring partnerships to stay afloat. Recent reports suggest that the company is in advanced discussions with Nissan for a potential collaboration on electric trucks. Additionally, Fisker has unveiled plans for new vehicle designs, including a compact SUV called the Pear and a sports car named the Ronin.
Despite some success in selling its Ocean SUV, Fisker continues to face high operational costs and challenges with its direct-sales model. As a result, the company has announced plans to shift towards a dealership model to help clear its inventory of cars valued at approximately $530 million as of March 1.
However, the company received another setback with reports from The Wall Street Journal indicating that it has enlisted the help of financial advisors to explore a potential bankruptcy filing. Following this news, Fisker’s shares fell by 45% in after-hours trading, further highlighting the uncertainties surrounding the company’s future.
While the validity of the reports may be questioned, considering the source’s history and potential bias, the challenges faced by Fisker are undeniable. The company’s decision to seek financial advice does not necessarily mean it will file for bankruptcy, but rather reflects a strategic evaluation of its options moving forward. The coming days will shed more light on Fisker’s path forward and the decisions it will make to address its financial woes.