Home Economy The negotiations broke down. Fisker’s demise is a matter of time, he argues

The negotiations broke down. Fisker’s demise is a matter of time, he argues

by memesita

2024-03-27 13:56:00

Nissan won’t bail out struggling electric car maker Fisker Inc. It has no money or sources of financing, and the time is approaching when it will seek protection from creditors, according to the analyst.

The American car company Fisker, for which the Austrian company Magna Steyr produces the electric SUV Ocean, found itself in financial difficulties, from which a large, initially anonymous car company was supposed to help it. It turned out that the car company was the Japanese Nissan, but according to the latest news, nothing will come of it.

Fisker said the negotiations were over and that the New York Stock Exchange planned to delist its shares because of the abnormally low prices. They slumped another 29% to 8 cents a share on Monday and were suspended from trading.

“We currently do not have sufficient financial reserves or sources of financing,” the automaker said. According to Thomas Hayes of hedge fund Great Hill Capital, it’s only a matter of time before Fisker seeks protection from creditors. “I can’t say whether it will be next week or next year, but it’s inevitable.” is quoted by the Reuters agency.

The auto company went public in 2020, but its stock price has fallen since then. It has remained below $1 per share for a long time this year. In February the New York Stock Exchange warned that it might delist the company because the share price was too low. The automaker still has five months to raise the price above the dollar.

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Fisker had already announced emergency austerity measures in early March, which included laying off 15% of employees from sales positions. Until now he wanted to sell cars directly to customers, but he decided to switch to the classic dealer model, common in Europe and the United States.

If the automaker Fisker Inc. goes bankrupt, it will be the second automaker founded by designer Henrik Fisker. His first car company, Fisker Automotive, sold the Karma plug-in hybrid sedan and went bankrupt during the financial crisis of the late 2000s.

Fisker is behind the look of the Ford Shelby GR-1 concept and production BMW Z8. He also worked on the first generation BMW X5 and the original Tesla Model S. However, his most famous creations are the Aston Martin DB9 and the V8 Vantage in the generation produced since 2005.

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