After recently warning that it was running out of cash, EV maker reportedly has hired restructuring advisers
Shares of Fisker Inc. dropped about 47% in the extended session Wednesday after a report said the embattled EV maker is exploring a bankruptcy filing.
The Wall Street Journal reported that Fisker FSR, +3.53% has hired restructuring advisers to assist with a possible filing, citing people familiar with the matter.
Two weeks ago, Fisker warned it risked running out of cash and that it was in talks with an unnamed major carmaker for an investment or a joint development of one or more electric-vehicle platforms.
According to the Journal on Wednesday, Fisker hired financial adviser FTI Consulting and the law firm Davis Polk to work on a potential bankruptcy filing.
Fisker declined to comment.
The company became public through a blank-check company in 2020 and has been dubbed the “Apple of autos” for its strategy of outsourcing the actual making of its EVs and focusing on design and consumer-interface elements.
Fisker in late February reported fourth-quarter sales of $200 million, well bellow FactSet consensus for sales of $327.7 million for the quarter.
The EV maker lost $463.6 million, or $1.23 a share, in the quarter, compared with a loss of 34 cents a share in the fourth quarter of 2023. The analysts surveyed by FactSet expected a GAAP loss of 23 cents a share.
Fisker and its top executive are no stranger to bankruptcy. The EV maker had an earlier life as Fisker Automotive, which went bankrupt in 2013 after some six years in business.
The founder of Fisker Automotive, Danish designer Henrik Fisker, had resigned from the company’s amid board infighting just before the bankruptcy, but he retained some brand rights and went on to found and lead Fisker Inc.
Shares of Fisker have lost 95% in the past 12 months, which contrasts with gains of about 34% for the S&P 500 index SPX. The stock ended its first day post-IPO at $10.14, and on Wednesday closed off 97% from that.