Dive Brief:
- The New York Stock Exchange warned electric vehicle manufacturer Fisker Inc. that it may delist the company because its common stock has traded below an average of $1 per share for 30 consecutive trading days, according to a Fisker press release on Friday.
- Fisker has six months to achieve a closing share price of $1 per share and an average closing share price of at least $1 per share over a 30-day trading period.
- The EV startup is considering a reverse stock split to boost its share price and comply with the minimum share price requirement. Investors must approve a stock split before Fisker’s next annual shareholder meeting.
Fisker stock drops below minimum list price
Dive Insight:
Fisker dealt with production delays and poor vehicle sales in 2023, losing $91 million in the third quarter of fiscal year 2023 — leading the company’s stock price to drop as the issues persisted.
The automaker’s common stock has reached new lows since, however, and has began traded below $1 per share since mid-January, according to Google Finance. Last month, Fisker hired a new head of investor relations and vice president of internal audit and controls, according to a Jan. 16 press release.
If Fisker does not meet the minimum share price requirement within six months, the NYSE will suspend trading of the company’s stock and begin the delisting process, according to a securities filing.
Racing against the clock, Fisker is working to turn its finances around by shifting its strategy.
In January, Fisker announced it would abandon its direct-to-consumer sales model and sell vehicles through dealers to boost sales and revenue. More than 100 dealers in the U.S., Canada and Europe are interested in selling Fisker’s vehicles, according to the company. Four dealers have already agreed to sell Fisker vehicles in the U.S., according to a second company press release on Friday.
The company also plans to sell unsold 2023 models by the end of the first quarter of 2024 to improve its balance sheet, Fisker said last month.
The automaker did not immediately respond to a request for comment.
