Fisker Inc., founded by Danish entrepreneur Henrik Fisker in 2016, is on the brink of financial collapse following the breakdown of negotiations with a major automotive manufacturer, reportedly Nissan. As a result, Fisker’s stock has been delisted from the New York Stock Exchange (NYSE). The plummeting stock prices prompted NYSE to suspend trading, citing “abnormally low” valuation, with shares trading as low as $0.09 before suspension.
The potential delisting and bankruptcy not only threaten the company’s existence but also pose significant risks to its investors and customers. Existing Fisker shareholders face uncertainty and potential losses, while those who have ordered but not yet received their vehicles may encounter serious challenges in the event of bankruptcy. Any warranty claims or customer complaints would need to be directed to the bankruptcy estate, with uncertain prospects for receiving dividends.
Additionally, Fisker is grappling with production issues, including a halt in manufacturing for up to six weeks due to inventory surplus and difficulty in selling vehicles. The company’s history of quality problems, such as incurring losses of up to half a million dollars per vehicle sold last year, and its previous bankruptcy with Fisker Automotive in 2013, further exacerbate its predicament.
Despite efforts to secure capital and a new manufacturing partner in the United States to avert the crisis, Fisker’s endeavors have thus far proven futile. The company is now considering various strategic options, including the possibility of bankruptcy or restructuring, as purportedly no other viable alternatives exist in the current market environment. Fisker’s future is uncertain, and its employees also face job insecurity, with the company having already laid off 15 percent of its workforce.