Fisker Stock Down to 3 Cents

By Douglas A. McIntyre Updated May 13, 7:26AM EDT · Published May 11, 7:01AM EDT

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Fisker Stock Down to 3 Cents — © Alex Wong / Getty Images

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 | LCID Price Prediction) 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.

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.