Henrik Fisker, a widely respected Danish automotive designer, joined the battle for electric vehicle dominance in 2007 with his first endeavor, Fisker Automotive, but failed. The company ended with his resignation and bankruptcy in 2013. Now the designer-turned-CEO is back and determined to get it right.
In 2016, he came back with a new company bearing almost exactly the same name and logo. The new plan: Instead of making high-end sedans with six-figure price tags, target the mass market with a midrange, midsized electric SUV. He has plans for a smaller, even cheaper crossover, a midsize pickup truck, and, yes, a nearly $400,000 electric supercar.
But the company has struggled to deliver cars to its customers and has faced software problems and a daunting cash burn. And, it carries more than $1 billion in debt.
In its earnings release for the fourth quarter, Fisker said there is substantial doubt about its ability to continue as a going concern.
"I would not be the least bit shocked if Fisker is bankrupt before the end of 2024," said Sam Abuelsamid, principal research analyst at Guidehouse Insights.
The plan is to start selling cars through dealers and seek outside investment from a large automaker. According to Reuters, that automaker is Nissan. Both companies declined to comment on the report.
Meanwhile, shares of the company trade well below $1 apiece, putting Fisker in danger of being delisted by the New York Stock Exchange.
"I think it is grossly undervalued," Henrik Fisker said of the stock in an interview with CNBC in early February, saying that the company's share price is being hit by industrywide headwinds and higher interest rates. "It more reflects the general sentiment. And I think some analysts and investors have a hard time to see who actually is going to be the winners."
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