Tech

NYSE Suspends Trading of Fisker Stock

The New York Stock Exchange (NYSE) announced on Monday the immediate suspension of trading shares belonging to electric vehicle (EV) startup Fisker, signaling its intention to remove the company from its stock exchange.

NYSE Reason for Suspension

The NYSE cited that Fisker’s stock no longer meets the requirements for listing due to significantly low price levels. This decision follows a warning issued to Fisker by the NYSE a month earlier, indicating that the stock price had consistently traded below $1 for 30 days, violating the exchange’s regulations.

Fisker has the option to contest the NYSE’s determination, but the company stated in a filing on Monday that it anticipates its stock to be transferred to an over-the-counter market like OTC Pink. Additionally, the delisting triggers repayment clauses in two loans, posing a significant financial challenge for the business.

Turbulent Developments

The suspension of trading marks a turbulent day for Fisker, with shares plummeting over 28% before trading was halted. Earlier in the day, Fisker disclosed the loss of a potential deal with a major automaker, reportedly Nissan, jeopardizing a recently announced effort to secure emergency funding.

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Challenges Facing Fisker

Fisker has faced mounting challenges in recent months, including customer complaints, legal disputes, and federal investigations. The company has struggled to meet sales targets for its Ocean SUV, even after shifting from direct sales to dealership models. Quality issues have also plagued the company, with internal documents revealing difficulties in addressing them.

In response to financial pressure, Fisker implemented layoffs, reducing its workforce by 15% in February. As of last week, the company reported having only $121 million in cash reserves. With production paused and a warning to investors about its financial viability without additional funding, Fisker’s future remains uncertain.

The NYSE’s suspension of trading underscores the challenges facing Fisker as it navigates through a turbulent period in its journey as an EV startup.

Allen

Allen holds a Master's degree in English Literature and boasts seven years of experience as a content writer. Specializing in Entertainment, Sports, and the latest news, he excels in crafting compelling narratives that captivate audiences. Allen's expertise in language and storytelling ensures that his content is both informative and engaging.

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