Fisker Inc., the embattled electric vehicle maker once touted as the “Apple of autos,” is teetering on the brink of bankruptcy, according to a report from The Wall Street Journal. The company has hired restructuring advisers, including financial adviser FTI Consulting and the law firm Davis Polk, to assist with a potential bankruptcy filing.
This alarming development comes just two weeks after Fisker warned investors that it was at risk of running out of cash and was in talks with an unnamed major carmaker for an investment or joint development deal. The company’s struggles have been amplified by dismal financial performance, with fourth-quarter sales of only $200 million, far below analysts’ expectations of $327.7 million.
Fisker’s losses have also mounted, reaching a staggering $463.6 million, or $1.23 per share, in the fourth quarter, compared to a loss of 34 cents per share in the same period the previous year. Analysts had anticipated a more modest loss of 23 cents per share.
The once-promising EV maker, which went public through a special purpose acquisition company (SPAC) in 2020, has seen its share price plummet by a staggering 95% over the past 12 months, in stark contrast to the S&P 500’s 34% gain during the same period.
Bankruptcy is not a new concept for Fisker and its founder, Danish designer Henrik Fisker. The company’s predecessor, Fisker Automotive, filed for bankruptcy in 2013 after just six years in business, plagued by boardroom infighting that ultimately led to Fisker’s resignation.
As Fisker Inc. explores its options, including a potential restructuring under Chapter 11 bankruptcy protection, the future of the company remains uncertain. Investors and industry analysts alike will be watching closely to see if the “Apple of autos” can find a way to navigate these turbulent waters or if it will ultimately meet the same fate as its predecessor.
