Fisker Stock Plunges On Report The EV Manufacturer Is On Brink Of Bankruptcy

Fisker Inc. FSR shares are falling after hours Wednesday following a Wall Street Journal report suggesting the company is preparing for a possible bankruptcy filing.

The Details: According to the report, Fisker is considering a potential bankruptcy filing and has hired restructuring advisers to assist.

Fisker previously issued a going-concern warning and a 15% workforce reduction as it struggled to remain afloat amid worse-than-expected losses and debt of over $1 billion.

Most recently, popular tech YouTuber Marques Brownlee reviewed Fisker’s Ocean SUV and dubbed it the worst car he has ever reviewed in a video two weeks ago.

A Fisker spokesperson told Benzinga at the time the issues pointed out by Brownlee were confined to early build vehicles and it is attempting to address the issues.

“As adoption grows and the number of drivers and miles driven increases, our innovations are tested under a wider range of conditions that reveal ways we can improve," the spokesperson said.

FSR Price Action: According to Benzinga Pro, Fisker shares are down 47.25% after hours at 17 cents at the time of publication Wednesday.

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Photo: Courtesy of Fisker, Inc.