Fisker reportedly hires bankruptcy consultants [Updated statement from Fisker]

Electric vehicle manufacturer Fisker is facing financial turmoil as it reportedly hires restructuring advisers to navigate a potential bankruptcy filing, as reported by the Wall Street Journal. Despite a 300% increase in deliveries in Q4, the company’s stock faces delisting and doubts about its sustainability.

In efforts to secure outside investment, Fisker had been in talks with Nissan for a partnership on electric trucks. The company also recently unveiled plans for future vehicle designs, including a pickup truck, a compact car, and a sports car. Fisker claims to turn a profit on its Ocean SUV through contract manufacturing with Magna Steyr, but operational costs continue to pose challenges.

In a strategic shift, Fisker announced a move away from direct sales to focus on working with dealer partners to sell inventory. The decision came as the company’s stock plummeted 45% in after-hours trading following news of hiring restructuring advisers. However, the stock rebounded after Fisker’s statement highlighted efforts to raise capital and seek a partnership with a major automaker.

The mention of seeking a partnership led to a 42% surge in after-hours trading, suggesting investor optimism for Fisker’s future. While uncertainties loom over the company’s prospects, questions remain about whether Fisker will indeed file for bankruptcy or explore alternative paths forward. The situation underscores the challenging landscape faced by electric vehicle manufacturers in a rapidly evolving market.