Fisker, the electric vehicle manufacturer, is reportedly considering bankruptcy as it grapples with financial challenges. Recent reports suggest that the company has enlisted restructuring advisers to navigate through its precarious situation, indicating a possible bankruptcy filing in the near future.
Despite a notable 300% surge in deliveries in the last quarter, Fisker’s stock faces potential delisting due to declining share prices, and its quarterly report raises concerns about its ability to sustain operations. Seeking external investment for survival, Fisker has engaged in advanced discussions with Nissan for a potential partnership on electric trucks, aligning with its future vehicle designs, including the “Alaska” pickup truck resembling the Nissan Frontier.
While Fisker claims profitability from its Ocean SUV sales, facilitated through contract manufacturing with Magna Steyr, operational costs and scalability issues persist. Transitioning away from a direct-sales model to collaborating with dealer partners reflects efforts to address inventory challenges, valued at approximately $530 million.
The recent report of Fisker seeking bankruptcy assistance from FTI Consulting has further impacted investor confidence, with Fisker shares plummeting by 45% in after-hours trading, underscoring the severity of its financial turmoil.