How much trouble is electric vehicle (EV) maker Fisker in? Its stock has dropped from $6 last October to $0.03. Yes, that’s three cents. It recently pulled its earnings guidance, said it is looking at “strategic options” and faces a federal investigation of one of its braking systems.
Fisker recently said it may not be able to pay its debts. It also said negotiations with a larger car company to rescue it have ended. Moreover, The Wall Street Journal reported, “Fisker said its options may include restructurings, capital markets transactions, refinancings or sales of assets, among other things.”
Fisker’s recent decision to file for bankruptcy in Austria may be a sign of things to come. Although it said it would continue to operate in the EU nation, it is hard to tell where the necessary capital will come from.
Fisker almost certainly will not survive as an independent company. Since it has not found a buyer, liquidation is the most likely end. However, Fisker does not have much to liquidate.
Fisker’s trouble shows other small EV companies that falling sales in the sector may take other companies with it. Lucid Group Inc. (NASDAQ: LCID) and Rivian Automotive Inc. (NASDAQ: RIVN) are on the list. They face Tesla Inc. (NASDAQ: TSLA) and every major car company in the world. Tesla has issues of its own. Its shareholders need to decide about a very rich comp package for CEO Elon Musk.
Fisker will be the first of several EV companies that will not make it.
In 20 Years, I Haven’t Seen A Cash Back Card This Good
After two decades of reviewing financial products I haven’t seen anything like this. Credit card companies are at war, handing out free rewards and benefits to win the best customers.
A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges.
Our top pick today pays up to 5% cash back, a $200 bonus on top, and $0 annual fee. Click here to apply before they stop offering rewards this generous.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.