Fisker Stock: EV Startup Plummets On Report Tesla Rival Mulling Bankruptcy

Fisker (FSR) plunged more than 40% in late trading Wednesday, on a report that the U.S. EV startup and would-be Tesla rival is preparing for a possible bankruptcy filing.

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Fisker has hired restructuring advisors to aid in a possible bankruptcy filing, The Wall Street Journal reported, citing sources.

The EV startup last month said it could run out of cash this year, issuing a “going concern” warning. In late February, Fisker delayed full 2023 financial results, saying it lacked sufficient accountants.

Fisker has struggled with stalling EV demand and ongoing production hurdles facing many EV startups. In June, Fisker finally began U.S. deliveries of its first EV, the Ocean SUV.

Fisker stock dived 46% after hours Wednesday. Shares rose 3.5%, or 1 cent, to 32 cents on Wednesday, but have crashed 82% in 2024 alone.

EV Startup Woes

Tesla CEO Elon Musk recently commented that Rivian Automotive (RIVN) could go bankrupt in six quarters. Rivian production and deliveries are much stronger than Fisker’s, but its 2024 output guidance underwhelmed and it put a planned Georgia factory on hold.

Luxury EV maker Lucid Motor (LCID) recently slashed 2024 production guidance well below views, amid weak demand and prices.

Tesla is profitable and an EV giant, but profits have been sliding with deliveries expected to fall sharply in Q1 vs. Q4, despite ongoing price cuts and incentives worldwide.

Rivian stock edged up in late trading. Shares fell 5.3% to 11.71 on Wednesday, a third straight decline after bouncing from record lows recently.

Lucid stock tilted higher in extended action.

Tesla stock fell a fraction overnight. Shares skidded 4.5% on Wednesday to 169.50, the lowest point since May. TSLA stock has tumbled nearly 32% in 2024, making it the worst performer on the S&P 500 index.

Before Wednesday’s open Wells Fargo downgraded the EV giant to sell. After the close, UBS cut its Tesla price target to 165 from 225. Both joined other analysts it slashing first-quarter delivery targets and full-year profit estimates.

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