The voluntary bankruptcy filing last month of Fisker Inc. has further tanked the company’s already troubled share prices.
The stock price of the Manhattan Beach electric vehicle manufacturer went down by 60% from a close of 5 cents on June 17 to one of 2 cents on the following day after announcing it had filed for Chapter 11 bankruptcy protection.
The company’s shares have lost nearly 99% of their value since the start of the year when they closed at $1.63 on Jan. 2 and June 25 when they closed at about 2 cents. The company at its peak traded at $28.50 in February 2021.
The stock price closed at 2 cents on June 27.
Fisker is in advanced discussions with financial stakeholders over debtor-in-possession financing and sale of its assets.
A spokesperson for the carmaker said in a statement on June 17 that Fisker was proud of its achievements and that it put thousands of Fisker Ocean sport utility vehicles into the hands of customers in North America and Europe.
“But like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently,” a spokesperson said in a statement. “After evaluating all options for our business, we determined that proceeding with a sale of our assets under Chapter 11 is the most viable path forward for the company.”
The company had its stock delisted in late March from the New York Stock Exchange; it now trades on the over-the-counter market.
EVs are coming up short right now
Fisker’s local competition is not doing any better.
Faraday Future Intelligent Electric Inc. in Gardena, which is building the FF91Futurist in Hanford, announced on June 24 its plan to regain compliance with Nasdaq rules on the minimum amount its shares could trade at by seeking shareholder approval for a reverse stock split.
The reverse stock split proposal includes a proposed range between 1-for-2 and 1-for-40 shares of outstanding common stock, and a corresponding reduction in the total number of shares of common stock the company is authorized to issue, Faraday said in a release.
“The final ratio will be determined by the board after stockholder approval, with the option to abandon, delay or postpone the reverse stock split,” the company added.
Faraday had an 18% decrease in its share price after announcing the stock split after the market closed. It went from a close of 33 cents on June 24 to a close of 27 cents the following day.
Meanwhile, Torrance-based Canoo Inc. saw its stock price drop by 5% in late May after reporting its first quarter financial results.
The electric van manufacturer reported on May 14, an adjusted net loss of 57.3 million ($1.13 a share) for the quarter ending March 31, compared with a net loss of $72 million ($3.96) in the same period of the previous year. The company had no revenue in the first quarter, the same as it had in the same period of the prior year.
