Key Takeaways
- Fisker Inc. disclosed that a “large automaker” had terminated discussions with the electric vehicle (EV) maker about a potential transaction.
- Fisker said that because of the talks ending, it won’t be able to meet the conditions of the $150 million in financing an unidentified investor provided last week.
- Fisker said it was considering a number of strategic alternatives, including the possibility of in- or out-of-court restructuring.
- Fisker shares fell to an all-time low early Monday before trading was suspended. After the markets closed, the New York Stock Exchange notified Fisker that it was starting delisting proceedings.
Shares of Fisker Inc. (FSR) plunged to their all-time low and the New York Stock Exchange (NYSE) moved to delist the stock after a potential deal that would help the company avoid bankruptcy fell through.
Trading was halted earlier Monday after the struggling electric vehicle (EV) maker reported negotiations with an unidentified “large automaker” ended. The news added to concerns that the maker of the Ocean SUV could be forced into bankruptcy. After the markets closed, the NYSE said it would delist the electric carmaker because of the stock’s abnormally low price levels.
Last week, Fisker said it had secured $150 million from the unnamed automaker. It also announced it was pausing production for six weeks to “align inventory levels and progress strategic and financing initiatives.” The company warned that because the two companies could not agree to a deal, it “will not be able to meet a closing condition to the financing commitment” in a regulatory filing Friday.
The carmaker said in the filing it continues to evaluate a range of strategic alternatives, including the possibility of “in or out of court restructurings.” The Wall Street Journal reported earlier this month that Fisker was possibly considering bankruptcy.
Fisker said all the alternatives it is reviewing involved “significant uncertainties, potential significant delays, costs and other risks.”
Fisker shares have lost about 95% of their value in 2024 and were halted early Monday at about 9 cents each.
Update, March 25, 2024: This article has been updated with information about Fisker’s delisting.