It might be the end of the line for Fisker. The New York Stock Exchange said Monday that it had suspended trading of the electric vehicle startup’s shares and would soon delist the stock. The exchange cited “abnormally low” share prices.
Fisker stock closed down another 28% on Monday to just 9 cents per share.
Now Fisker — which had already said it might run out of cash this year and that it would stop all production for the next several weeks as bankruptcy chatter built — might be the next electric vehicle startup to fail, joining the likes of Aptera and Detroit Automotive. The company said in a filing with the Securities Exchange Commission on Monday that its discussions with an unnamed automaker about a potential deal had fallen through. Fisker said it “continues to evaluate strategic alternatives.”
The Manhattan Beach, California-based company had been warning investors that it might run out of money and had reportedly hired advisors in preparation of a possible bankruptcy.
In announcing its production halt earlier this month, Fisker said it has about 4,700 vehicles on hand, which it claimed are worth more than $200 million, and that it delivered 1,300 EVs this year. But Fisker said it would stop production until May to “align inventory levels and progress strategic and financing initiatives.”
The startup also said it wants to raise up to $150 million by selling convertible notes as it struggles to stay afloat.
Fisker also disclosed earlier this month that it failed to make a $8.4 million interest payment on March 15 for some convertible notes due in 2026 despite having the liquidity, according to a regulatory filing.
“We are aware that the industry has entered a turbulent, and unpredictable period,” CEO Henrik Fisker said in a statement last month.“With that understanding and taking the lessons learned from 2023, we have put a plan in place to streamline the company as we prepare for another difficult year.”
-William Gavin contributed to this article.