EV maker Fisker adds a recall of over 18,000 Ocean EVs to its troubles

Dow Jones06-12

MW EV maker Fisker adds a recall of over 18,000 Ocean EVs to its troubles

By Tomi Kilgore

All recalled vehicles will receive an over-the-air software update

Electric-vehicle maker Fisker Inc. can now add a recall to all the troubles it has seen over the past couple of months.

The California-based company, which has been fighting for its survival, said Wednesday that it has voluntarily recalled a total of 18,346 of its flagship Fisker Ocean electric sport-utility vehicles.

The stock (FSRN), which has been trading over the counter since late March, was still untraded in the premarket.

Of the total, 11,201 Oceans were recalled because their current control software may cause the vehicle to enter a "safe state protection" mode, which could lead to a loss of motor power.

The total also includes voluntary noncompliance recalls of 7,145 Oceans for not complying with certain regulatory standards regarding gauges and icons in the cluster display.

The owners of the vehicles don't have to do anything, as all the recalled vehicles will receive over-the-air (OTA) software updates, which are expected to be completed by June 30.

The recalls come after the New York Stock Exchange said on March 25 that it immediately suspended trading of Fisker's stock, due to an "abnormally low" trading price.

The delisting of the stock led to an event of default under certain convertible notes.

Also on March 25, the company said talks over a potential deal with a large automaker, which was supposed to help save it from bankruptcy, had been terminated.

While Fisker did receive a short-term loan last month to help keep it afloat, the company said in early June that it had defaulted on a loan received in May.

The stock, which closed Tuesday at 5 cents, has plummeted 97.3% year to date.

-Tomi Kilgore

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June 12, 2024 07:32 ET (11:32 GMT)

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EV maker Fisker adds a recall of over 18,000 Ocean EVs to its troubles

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