US electric car company Fisker's talks with a large car maker for a potential deal have collapsed and the New York Stock Exchange plans to delist the electric-vehicle startup's shares due to"abnormally low" price levels.
"We do not currently have sufficient cash reserves or financing sources sufficient to satisfy all amounts due under the 2026 Notes or the 2025 Notes, and as a result, such events could have a material adverse effect on our business, results of operations and financial condition," it said. A potential bankruptcy will make Fisker the second failed auto startup from Henrik Fisker, who started his career as an automotive designer and was also a Tesla consultant.
But a slew of supply chain issues, production delays and fundraising hurdles sent its market valuation crashing to less than $100m. The $8.4m payment for some notes due in 2026 was supposed to be paid on March 15, but the startup said it did not pay despite having enough liquidity as it wanted to use the 30-day grace period to talk to investors about its capital structure.
Fisker's shares have lost more than 90% of their value this year, after the startup flagged going-concern risk in February and paused investments in future projects until it secured a partnership.