Reports indicate that the electric vehicle startup Fisker, has taken steps that suggest it may be considering a bankruptcy filing. Sources familiar with the matter have revealed that Fisker has enlisted the help of restructuring advisers from FTI Consulting and the law firm Davis Polk. These advisors have been brought on board to assist with potential restructuring efforts, although Fisker has chosen not to comment on the situation.
The news has had a significant impact on Fisker’s stock performance, with a reported drop of over 40% in after-hours trading following the publication of the report by the Wall Street Journal. In fact, the company’s stock has experienced a staggering decline of more than 80% since the beginning of the year, reflecting the uncertainty surrounding its future.
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Earlier announcements from Fisker have also hinted at financial challenges. The company recently acknowledged concerns about its ability to continue operations, along with plans for job cuts and a temporary halt in investments for future projects until it secures a partnership with a manufacturer. This indicates a broader struggle to sustain its operations and secure necessary funding.
Interestingly, there were talks of a potential investment from Nissan, which could have provided Fisker with a lifeline and granted Nissan access to Fisker’s electric pickup truck technology. However, the status of these negotiations remains uncertain amidst Fisker’s financial woes.
Overall, the situation suggests that Fisker is facing significant challenges in navigating the competitive landscape of the electric vehicle industry. The hiring of restructuring advisers and the potential for bankruptcy filing underscore the seriousness of the company’s financial predicament and the need for decisive action to address it.
