Downtrodden electric vehicle (EV) maker Fisker (OTCMKTS:FSRN) announced Tuesday that it will file for a restructuring under the Austria Insolvency Code. Predictably, Fisker stock is down on the news, in the red by about 13% as of this writing.
So, what do you need to know about Fisker lately?
Well, the EV maker’s path to bankruptcy continues to grow clearer. Indeed, the self-administered restructuring process will allow Fisker Austria the ability to maintain its integrity while attempting to enhance its value or sell its assets.
While this will ensure the continued operation of the company, along with payment of employees, it in essence confirms the company’s insolvency trajectory.
Today’s news serves as a follow-up to reports just days earlier that Fisker will shut down its Manhattan Beach headquarters as it attempts to transition from its direct-sales business model to a dealer-partnership sales structure. This also follows the closure of Fisker’s New York showroom.
That said, Fisker recently announced securing six new dealer partners in the United States. With these new dealers, it has a total of 24 dealer locations, including 12 in Europe.
Fisker sold 80 vehicles in the first quarter, making for 110 vehicles sold since the start of 2024, according to EV.
Fisker Stock Continues to Slide Amid Financial Pressures
With today’s drop, Fisker stock only continues to tread further into the red this year. Indeed, shares are down a staggering 97.5% so far this year, even despite a 96% jump in the past month.
FSRN stock now trades on over-the-counter “pink sheets” after being removed from the New York Stock Exchange due to an inability to meet minimum share-price requirements. At the time of this writing, Fisker is trading for about 4 cents per share.
The failing company is one of the most obvious victims of this year’s EV slump. Indeed, EV companies are down seemingly across the board as vehicle sales crater. This includes the likes of Tesla (NASDAQ:TSLA), Nio (NYSE:NIO) and many others.
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On the date of publication, Shrey Dua did not hold (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.
