EV Maker Fisker in Grave Trouble as Shares Tank

Despite the world’s inexorable march into an electrified automotive future, not all EV startups survive. Shares of Fisker, a California-based electric vehicle startup, were halted Monday. The company had warned in its March earnings call that cash was tight, and it might not survive the year.

The New York Stock Exchange indicated it would delist Fisker’s stock due to “abnormally low” price levels. Fisker was once an EV maker to watch. Its shares were trading at $28 in early 2021. This meant the company was valued at almost $8 billion. Fast forward to today, and company shares are worth less than 10 cents per share. This puts the company’s market cap at below $50 million. 

Fisker had been in talks over a joint venture with an unknown major automaker, but those talks fell through, spelling more trouble for the embattled automaker.

The Fisker Ocean electric SUV was the only product offered by the niche EV maker, which was founded by veteran car designer Henrik Fisker, in 2016. Last year, the company produced 10,000 units but only managed to deliver half of those to customers.

Working through third-party manufacturers, Fisker had planned to launch a smaller, more affordable model, but those plans have had to be shelved. Quality issues and scathing customer reviews also bedeviled the company’s flagship model.

The EV space has become increasingly competitive since Fisker’s launch. The company has had to deal with much greater competition from established automakers like Hyundai, Kia, Ford, and General Motors and the market leader, Tesla.