Fisker (OTCMKTS:FSRN) stock is falling hard on Tuesday after the electric vehicle (EV) company filed for Chapter 11 bankruptcy protection.
Fisker notes that it is seeking discussions with financial stakeholders concerning debtor-in-possession financing as a result of its bankruptcy filing. The company is also considering the sale of its assets.
On top of this, Fisker says its manufacturing halt will remain in place throughout the bankruptcy. The company is also seeking permission to continue its reduced operations. That includes ongoing pay and benefits for employees, as well as maintaining customer programs and paying vendors.
A Fisker spokesperson said the following in the bankruptcy news release:
“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently. After evaluating all options for our business, we determined that proceeding with a sale of our assets under Chapter 11 is the most viable path forward for the company.”
What This Means for FSRN Stock
While Fisker has brought in Huron Consulting Group as its restructuring advisor, the fate of the company remains unclear. It has struggled since the launch of its first EV last year. On top of that, Fisker ran into public relations troubles that didn’t help the situation.
FSRN stock is down 54.5% as of Tuesday morning. This has the shares down 98.8% since the start of the year.
Investors will want to stick around for even more of the most recent stock market stories!
We have all of the latest stock market news worth reading about on Tuesday! Among that is what’s going on with shares of Reliance Global (NASDAQ:RELI) stock, Zyn online sales being suspended, and a Nvidia (NASDAQ:NVDA) lawsuit. You can catch up on all of this news by checking out the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
