CNN
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Electrical car firm Fisker’s inventory plunged greater than 40% in after-hours buying and selling on Wednesday as investor concern in regards to the firm’s capability to remain in enterprise intensified.
On Wednesday, the Wall Street Journal, citing folks conversant in the matter, reported that Fisker had employed restructuring advisers to work on a possible chapter submitting.
Fisker declined to touch upon the report, however earlier this month, the EV maker warned that it might not have enough money to outlive one other yr.
In its fourth-quarter earnings report, launched in February, the corporate mentioned there was “substantial doubt about Fisker’s capability to proceed as a going concern.”
On the time, Fisker mentioned it was in dialogue with an present investor about presumably placing more cash into the corporate to maintain it afloat. The automaker mentioned it might additionally lay off 15% of its workforce to chop prices.
Fisker, which sells the Ocean electrical SUV, has an unusual business model during which it has fully outsourced the manufacturing of the one mannequin it presently sells. The Ocean is inbuilt Austria by Magna, an organization that has additionally constructed automobiles for Mercedes-Benz, BMW and Jaguar.
Final yr, Magna produced greater than 10,193 Fisker SUVs, however fewer than half of these have been delivered to clients inside the calendar yr, the corporate beforehand introduced. Fisker expects to ship about 20,000 this yr, it added.
Final month, the corporate was dealt a social media headache when Marques Brownlee, an American YouTuber, madeh a video about Fisker’s Ocean mannequin for his YouTube channel titled, “That is the Worst Automobile I’ve Ever Reviewed.”
“Don’t purchase this model of the Fisker Ocean,” reads the video’s description. Brownlee’s video has racked up greater than 4.5 million views thus far and despatched the inventory plunging after its launch.
Fisker’s inventory was buying and selling at 32 cents a share on the shut of buying and selling Wednesday, a greater than 80% decline because the begin of 2024.
Fisker is founder Henrik Fisker’s second automobile firm. His first, Fisker Automotive, produced a plug-in hybrid luxurious automobile known as the Fisker Karma. That firm went bankrupt in 2013 after Hurricane Sandy worn out a lot of its stock.