In recent years, many new manufacturers have entered the market. This is especially true of Chinese brands, but not only, as we can also quote Fisker.

Fisker is in trouble

In fact, we are thinking of companies like MG or BYD, not to mention Xpeng or Nio. But this also applies to American firms such as Fisker. The latter is the second carmaker founded by designer Henrik Fisker, and it already sells its electric SUV called the Ocean. But things are not going very well for the company, which is experiencing great financial difficulties. Indeed, shares of the U.S. electric car company fell more than 40% on Wednesday shortly after markets opened, raising concerns among investors about the company’s ability to sustain operations. According to The Wall Street Journal, which cites sources familiar with the matter, Fisker has approached restructuring advisers with an eye on possible bankruptcy proceedings. While Fisker did not comment on the report, the electric car maker had already warned this month that it was at risk of running out of money to survive another year.

How will Fisker behave?

Moreover, in its fourth-quarter earnings report in February, Fisker expressed significant doubt about its ability to continue as a going concern. At the time, the company said it was in talks with an existing investor to secure additional funding and keep its business afloat. The carmaker also announced layoffs of 15% of its workforce to cut costs. The situation is very delicate, while last year it was produced by a subcontractor, Magna over 10,193 vehicles, but less than half of them were delivered to customers during the calendar year. Thus, this year the manufacturer plans to deliver about 20,000 cars. The latter also faced controversy on social media recently when Marques Brownlee, an American YouTuber, posted a video titled “This is the worst car I’ve ever tested” in which he criticized the Ocean model.

Fisker shares were trading at 32 cents at the close on Wednesday, down more than 80% since the start of 2024.