Fisker is facing yet another daunting challenge as it grapples with the prospect of being removed from the New York Stock Exchange due to prolonged low stock prices spanning 30 consecutive days.
(Photo : Screenshot from Twitter post of @Grouse_Beater)
Fisker Ocean Electric SUV To Arrive This 2022? CEO Claims Early Production Will Start—Here's What To Expect
Receiving Non-Compliance Notice from NYSE
Californian electric vehicle (EV) startup Fisker finds itself in yet another challenging position as it confronts the possibility of being delisted from the New York Stock Exchange (NYSE) due to persistently low stock prices over a span of 30 consecutive days.
Fisker has disclosed that it received a non-compliance notice from the NYSE after its stock closed below approximately $1 for a continuous 30-day trading period. Failure to rectify this could result in the company's delisting, although Fisker is granted a six-month window to regain compliance.
As per Automotive News, the journey for Fisker has been fraught with hurdles, particularly evident in the struggles and setbacks faced last year in delivering its EVs to customers who had made purchases.
Previous Setbacks
Throughout the previous year, Fisker revised its production forecasts multiple times, citing challenges ranging from supply chain disruptions to internal issues.
Furthermore, in response to competitive pressures exemplified by Tesla's price reductions, Fisker made adjustments to its pricing strategy, slashing the cost of its luxury Ocean Extreme SUV by $7,500, and reducing it from $68,999 to $61,499.
Last year, despite initially pledging to produce 42,400 electric vehicles, the company fell short, manufacturing just over 10,000 units and delivering approximately 4,700.
Surprisingly, this setback did not hinder the surge in its stock price towards the end of the year. Fisker has opted to augment its direct-to-consumer model by incorporating dealership partnerships to expedite deliveries.
In a separate development, the US National Highway Traffic Safety Administration (NHTSA) recently announced an investigation into reports of "unintended vehicle movement" involving around 4,000 Ocean EVs.
Adding to the company's woes, popular YouTuber Marques Brownlee (MKBHD) dubbed the Fisker Ocean as the "worst car he's ever reviewed."
Brownlee, known for his Auto Focus channel, described the Ocean, crafted by renowned car designer Henrik Fisker, as an unsettling automotive experience and stated he wouldn't drive it even if it were provided for free.
However, Electrek had a different perspective after spending time with the Ocean. While he noted being "impressed by a few things," Dow concluded that the car was not yet fully prepared for widespread adoption.
Also Read: Bird Faces NYSE Trading Suspension After Stock Collapse, Will Appeal Delisting Notice
Fisker has certainly faced its fair share of challenges, but it's not alone in navigating the turbulent waters of the electric vehicle market. Smaller players in the EV industry are also feeling the pressure, grappling with tough competition and the effects of rising interest rates, among other hurdles.
California-based Faraday Future, for instance, recently received a warning from Nasdaq due to a sharp decline in its share price, despite just relaunching deliveries of its luxury $309,000 electric car.
Similarly, UK startup Arrival found itself delisted last month after failing to promptly post financial results, file a remediation plan, and hold an annual shareholder meeting.
Despite these obstacles, Fisker still holds the potential to stage a comeback, and we'll be closely monitoring its progress as the situation evolves.
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