Henrik Fisker is a widely respected Danish car designer who joined the battle for electric vehicle dominance in 2007, launching his first attempt, Fisker Automotive, which failed. The company ended in 2013 with his resignation and bankruptcy. Now the designer-turned-executive is back and determined to make things right.
In 2016, he came back with an almost identical new company Same name and logo. New plan: Instead of producing high-end sedans with six-figure prices, it will target the mass market with mid-range and mid-sized electric SUVs. He plans to launch a smaller, cheaper crossover, a midsize pickup truck and, of course, an electric supercar worth nearly $400,000.
But the company has struggled to deliver cars to customers and has faced software issues and a severe cash burn. And it’s saddled with more than $1 billion in debt.
Fisker said in its fourth-quarter earnings report that it has significant doubts about its ability to continue operating.
“I wouldn’t be shocked at all if Fisker goes bankrupt by 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 major automaker. Reuters reports that the automaker is Nissan. Both companies declined to comment for this report.
Meanwhile, the company’s stock price is well below $1 a share, putting Fisker in danger of being delisted from the New York Stock Exchange.
“I think the stock is severely undervalued,” Henrik Fisker said of the stock in an interview with CNBC in early February. He said the company’s stock price is suffering from industry-wide headwinds and interest rates. Rising blows. “It’s more a reflection of overall sentiment. I think it’s hard for some analysts and investors to see who’s going to be the real winner.”
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