Fisker's Decline

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【Summary】Fisker, an electric car company competing with Tesla, is facing significant challenges. It has lost two chief accounting officers in a short period of time and has been flagged by the NYSE for late filing of important documents. There is a possibility of being delisted from the exchange. Fisker's weak manufacturing capacity is evident as it only delivered 1,097 vehicles in the third quarter, compared to Tesla's 400,000.

FutureCar Staff Nov 22, 2023 5:15 AM PT

Fisker (NYSE: FSR) is facing significant challenges as it competes with Tesla and other major players in the electric vehicle (EV) market. In order to be competitive, Fisker needs to expand its operations, but recent news about the company's business indicates that it is in deep trouble. At one point, the stock was considered a "buy."

The company made headlines again as it lost another chief accounting officer. This marks the departure of two chief accounting officers in just a few months. According to The Wall Street Journal, "Florus Beuting, who was named chief accounting officer in early November, has left the automaker, the company said in a regulatory filing Monday."

This news comes on top of other negative developments for Fisker. The NYSE has flagged the company for late filing of important documents, including its last quarterly financial statement to the SEC. The NYSE has given Fisker six months, starting from November 14, to file these documents. Failure to do so could result in the company being delisted from a major exchange, which would be a significant setback.

While Fisker did not file a 10-Q with the SEC, it did release its third-quarter results in a limited manner. The company reported delivering only 1,097 of its "Ocean" models during that period, compared to Tesla's delivery of over 400,000 vehicles. Fisker has also lowered its production targets, indicating its weak manufacturing capacity. In contrast, Tesla has a vast network of EV engine chargers.

In the third quarter, Fisker experienced a loss of $91 million on $72 million in revenue. The company's balance sheet shows that it has only $527 million in cash and cash equivalents. At the current burn rate, this cash will be depleted in a little over five quarters.

Fisker's stock is currently trading at $2.35, classifying it as a "penny stock." The price has dropped nearly 90% in the past two years, and there is no indication that the shares will recover a significant portion of this loss.

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