Image Source: Pixabay

Fisker Inc (NYSE: FSR) crashed another 40% in extended trading on Wednesday following a report that it’s considering filing for bankruptcy.

Fisker stock is now worth 17 cents only

The embattled electric vehicles company has already hired restructuring advisors to proceed with the filing, as per the Wall Street Journal.

Fisker refused to comment on the said report this evening.

The news arrives a couple weeks after FSR warned it could run out of cash. It was also reported in talks with a notable automaker for a collaboration over an electric vehicle platform or a possible investment at the time.

Is Lucid the next Fisker, aka bankruptcy candidate?
▫️My view is that it's very difficult to estimate in Lucid's case since Lucid has a majority shareholder (Saudis) who has a long history of funding rather 'smart' investments, for a long time.
▫️Since you shouldn't… pic.twitter.com/AVzI39PV7O

— AJ (@alojoh) March 13, 2024

Fisker stock is going for just 17 cents in after-hours versus close to $7.0 less than six months ago.

FSR has over $1.0 billion in debt

Fisker announced plans of lowering its headcount by some 15% to cut costs just days ago. But it looks like the layoff wasn’t enough to save it from bankruptcy.  

In February, the EV maker said it ended 2023 with more than $1.0 billion in debt on its balance sheet. In comparison, $FSR generated only $273 million in sales last year.

If the New York listed firm does indeed file for bankruptcy, it would be the second failure for Henrik Fisker – its founder and current chief executive.

Fisker shares have struggled immensely in the trailing twelve months amidst the ongoing EV slowdown. Jim Farley – the chief executive of Ford Motor even urged the Wall Street recently to “stop looking at Tesla” as the future of the automotive industry (read more).

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