A once-prominent electric vehicle (EV) startup may be on the verge of losing its spot on the New York Stock Exchange. Fisker (NYSE:FSR) enjoyed an impressive year of growth after making its public debut in October 2020. However, since its peak in early 2021, FSR stock has slowly bled out almost all its value, falling from nearly $30 per share to less than $1. Now, the company’s troubles are catching up to it. Fisker has received a non-compliance notice from the NYSE, citing its failure to trade above the $1 mark for 30 consecutive days. If the stock cannot reverse this trend, it will lose its spot on the exchange.
Receiving a warning like this isn’t necessarily a death sentence for a stock. However, when a company creeps so close to the edge, it can be hard for investors to retain any faith that it will experience a turnaround. Given how much FSR stock has struggled, even as the EV market has remained robust, it may be especially difficult for investors to keep betting on it.
What’s Happening With FSR Stock?
News of the possible delisting has only made things worse for FSR stock. As of this writing, it is down 11% for the day. This is in keeping with how it has performed throughout the past two quarters. Over the previous six months, shares have dipped more than 80%, falling deep into what can only be described as the “danger zone.” FSR stock currently trades at 65 cents per share. That means if it wants to get back to $1, it will need to garner some significant momentum.
Positive momentum is something that Fisker hasn’t seen in months. Now, it has exactly six to regain compliance with the NYSE. While it’s not impossible, it also doesn’t seem likely. The past year has brought mostly problems for FSR stock. As Electrek reports:
“Last year, Fisker cut its production forecast multiple times due to issues ranging from supply chain problems to internal issues. In response to Tesla’s price slashing last year too, Fisker reduced the price of its luxury Ocean Extreme SUV by $7,500, from $68,999 to $61,499.”
It’s not hard to see why many experts have soured on FSR stock as the company’s struggles have mounted. InvestorPlace’s Louis Navellier recently urged investors to sell it now, citing problems with the company’s excessive debt. Wall Street analysts share this perspective. During the past week, analysts form both Goldman Sachs and Barclays have issued bearish takes, rating FSR as a “sell.”
Fisker has time to get back to $1 and stay there. But if experts continue losing faith, there’s little to stop investors from doing the same. Even its previous meme-stock status isn’t helping the fallen company now. FSR stock isn’t dead yet, but unless something dramatic changes soon, it will likely find itself trading over the counter.
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On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
