Fisker Stock Is Slamming On The Brakes Thursday: What's Going On?

Fisker Inc FSR shares are tumbling Thursday following reports suggesting the EV maker is exploring potential bankruptcy.

What To Know: According to a Wall Street Journal report, Fisker has brought on restructuring advisers to help with a possible bankruptcy filing. People familiar with the matter reportedly said the company hired financial adviser FTI Consulting and law firm Davis Polk to work on a potential filing.

The news comes just weeks after Fisker reported preliminary fourth-quarter results and warned that it expected to conclude there was substantial doubt about its ability to continue as a going concern when its annual financial statements for 2023 were filed with the SEC.

Fisker noted at the time that it was in discussions with an existing noteholder about potentially making an additional investment in the company. Fisker had $272.9 million in sales last year. The company reported having $395.9 million in cash, equivalents and restricted cash as of Dec. 31, but it’s sitting on more than $1 billion in debt.

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FSR Price Action: Fisker shares were down 40.9% at 19 cents at the time of publication, according to Benzinga Pro.

Photo: courtesy of Fisker.