Second time’s the charm, or that’s perhaps what Henrik Fisker thought when he launched the eponymous electric vehicle maker, Fisker Inc., after a failed attempt a few years earlier (called Fisker Automotive).
Now, the critically acclaimed Danish designer’s company is facing a number of high-risk situations at once.
California-based Fisker, which listed through a SPAC in 2020, received a notice from the New York Stock Exchange for default as its shares closed at less than $1 on average for 30 consecutive trading days, the company said. company in a statement last week.
The notice does not immediately result in the suspension of Fisker’s trading on the NYSE, but failure to comply could eventually lead to its delisting.
Fisker said he has six months to once again comply with stock exchange rules and is considering different options, including a reverse stock split, to help with that.
“The company intends to continue trading on the NYSE and is considering all available options to regain compliance with the NYSE’s continued listing standards,” Fisker said in a statement.
Fisker shares have plummeted nearly 89% in the last year.
SUV maker Ocean faced several tailwinds when it came to delivering its cars to customers.
Last year, Fisker built just over 10,000 cars, missing its initial estimate by more than three-quarters and ultimately delivering less than half of the vehicles it made.
Adding to the mounting pressures, it became the subject of a US National Highway Traffic Safety Administration investigation last week after thousands of Fisker cars sped away or moved spontaneously in 2023.
Competition, reach and more
The electric vehicle market has been challenged by increased competition, reduced cash reserves and higher costs.
Some of these factors have hurt many startups in the space, including the UK subsidiary of British company Arrival, which went into administration earlier this month (it was delisted from Nasdaq shortly before).
Fisker’s Ocean SUV has had a difficult path to chart, whether due to the initial software issues it faced or, more recently, a review by an influential YouTuber who recently called it the “worst car” he’s ever tested.
Marques Brownlee, also known as MKBHD, said in a video that driving the Fisker Ocean was “the strangest car review experience.”
There were some positives: he praised the car’s design and its “comfortable seats.”
Fisker has had big ambitions to increase its electric vehicle production to about 300 SUVs a day.
But the company has fallen far short of its goals, TechCrunch reported in January, citing internal documents.
The company also delivers SUVs in Europe with the help of its contract manufacturer Magna Steyr in Austria, but has struggled to make its initial estimates of global demand for electric vehicles a reality.
The company said it would reduce operations in December to ensure its liquidity remains intact by cutting its production target.
Among its difficulties in the United States after launching Ocean last June is its difficulty reaching buyers using its direct-to-consumer sales model.
Fisker decided to abandon the approach, made famous by companies like Tesla and Rivian, and establish brick-and-mortar dealerships in hopes of increasing its presence.
A Fisker representative directed Fortune to his press release when approached for comment.
negative karma
Henrik Fisker’s first step into car manufacturing was through Fisker Automotive, a company that made plug-in hybrid cars and was popular with celebrities like Justin Bieber.
He was an expert in the field and had worked at companies such as BMW and Aston Martin.
The company filed for bankruptcy in 2013 after its flagship vehicle, Karma, failed during testing.
Fisker Automotive had managed to raise $1.4 billion from public and private investors since its founding in 2007, Reuters reported.
During his time, the company never made a profit; instead, it lost thousands of dollars manufacturing each car.
With his second rodeo, Henrik’s big pitch for the electric vehicle market has been to make it easier for the masses to afford all-electric cars, as current options can drive people out of the market, Henrik said. The edge in an interview last January.
In its third-quarter earnings released in November, Fisker Inc.’s revenue was $71.8 million, while its losses for the period totaled $91 million.
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