Fisker, responding to reports that it's moving toward a bankruptcy filing, said late Thursday that it's in "strategic" talks with a big automaker. FSR stock soared early Friday after losing more than half of its value Thursday.
Fisker stock dived 52% to 15.5 cents on Thursday after The Wall Street Journal reported the U.S. EV startup and would-be Tesla rival had hired restructuring advisors to aid in a possible bankruptcy filing
After the close, Fisker said it doesn't normally comment on "market rumors and speculation," but said it "often" works with outside advisers.
Further, "Fisker is focused on raising additional capital and engaging in a strategic partnership with a large automaker," the EV maker said.
Of course, there's no guarantee that such talks will bear fruit.
The EV startup last month said it could run out of cash this year, issuing a "going concern" warning. In late February, Fisker delayed full 2023 financial results, saying it lacked sufficient accountants.
Fisker has struggled with stalling EV demand and ongoing production hurdles facing many EV startups. In June, Fisker finally began U.S. deliveries of its first EV, the Ocean SUV.
Fisker stock climbed 13% to 17.5 cents on Friday, well off morning and overnight highs, regaining just a portion of Thursday's loss.
EV Startup Woes
Tesla CEO Elon Musk recently commented that Rivian Automotive could go bankrupt in six quarters. Rivian production and deliveries are much stronger than Fisker's, but its 2024 output guidance underwhelmed and it put a planned Georgia factory on hold.
Luxury EV maker Lucid Motor recently slashed 2024 production guidance well below views, amid weak demand and prices.
Tesla is profitable and an EV giant, but profits have been sliding with deliveries expected to fall sharply in Q1 vs. Q4, despite ongoing price cuts and incentives worldwide.
Rivian stock popped 3.3% to 11.04 Friday, aided by a Piper Sandler upgrade. RIVN stock slumped 8.7% on Thursday, a fourth straight decline after bouncing from record lows recently.
Lucid stock climbed 2.7% to 2.70 Friday. Shares sank 6.1% on Thursday.
Tesla stock rose 0.7% to 163.57 on Friday. Shares fell 4.1% on Thursday to a 10-month low. TSLA stock has tumbled nearly 35% in 2024, making it the worst performer on the S&P 500 index.
Before Wednesday's open Wells Fargo downgraded the EV giant to sell. Late Wednesday, UBS cut its Tesla price target to 165 from 225. Both joined other analysts it slashing first-quarter delivery targets and full-year profit estimates.
Cathie Wood's Ark Invest disclosed new Tesla share buys Thursday night.
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