Troubled EV maker Fisker saw its shares in New York implode on Thursday after The Wall Street Journal reported it had hired restructuring advisors to assist with a possible bankruptcy filing.
Late Thursday, Fisker executives said in a statement that the company does not generally comment on "market rumors and speculation." However, they noted that the company "often" works with third-party advisers to manage the business and assist in developing and executing strategies.
"Fisker is focused on raising additional capital and engaging in a strategic partnership with a large automaker," the EV maker said.
Fisker shares were halved on Thursday after the WSJ report. In a roller coaster move, shares jumped 31% in premarket trading on news of potential strategic partnerships.
Fisker's float is 25% short...
Last month, Fisker warned its cash reserves would be depleted later this year, issuing a "going concern" notice. Fisker recently delayed full 2023 financial results, saying it lacked sufficient accountants.
Equity analyst Adam Jonas at Morgan Stanley is becoming increasingly correct following his recent note titled "Can EV Slowdown Trigger Auto M&A Wave?"
"EV sentiment is extremely negative... and will eventually deteriorate further, in our view. Legacy OEMs must find a way to balance EV relevancy with capital discipline. Full OEM mergers are complex, politically sensitive and tough to execute. Could 'merging' EV projects be more reasonable?" Jonas wrote in a note to clients last month.
Could Rivian be the next M&A target?
