By Emon Reiser
Shares of Fisker nosedived after the cash-strapped electric-vehicle startup filed for Chapter 11 bankruptcy.
The stock plummeted 52% on the OTC Markets to about 2 cents in Tuesday morning trading, putting shares at a nearly 99% decline year to date.
Fisker in February issued a "going concern" warning to its investors that it was burning through cash too quickly. The next month, it said it was temporarily halting production of its Ocean EV. It appointed a restructuring expert in early April and said it was examining its strategic options, but the company wasn't able to find a financial savior before going bust, The Wall Street Journal reported.
Once a would-be Tesla rival, Fisker failed to find its footing amid growing competition in the EV market. Less than a week ahead of its bankruptcy filing, Fisker issued a voluntary recall due to a software issue in its Ocean SUVs.
Write to Emon Reiser at emon.reiser@wsj.com
(END) Dow Jones Newswires
June 18, 2024 09:56 ET (13:56 GMT)
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