Fisker has reportedly “hired restructuring advisors to assist with a possible bankruptcy filing,” according to the Wall Street Journal.

Fisker has been going through a rough patch lately, with its shares possibly being delisted due to low share prices. It also indicated in its recent quarterly report that there was “substantial doubt” that the company could continue to operate, and that it was seeking outside investment. This is despite a 300% increase in deliveries in the fourth quarter, quite a performance from one quarter to the next.

And not long after Fisker’s quarterly report, there was news that they may have uncovered outside investment in the form of “advanced” talks with Nissan, which is reportedly seeking an electric truck partnership. Fisker unveiled a future pickup last year called the ‘Alaska’, and that truck looks a lot like a Nissan Frontier.

Fisker also recently announced two other future vehicle designs, the compact Pear and the Ronin sports car.

Fisker has claimed that it makes money from sales of its Ocean SUV (see our review of it here), thanks in part to its method of contract manufacturing through Magna Steyr. While this means lower margins because some of the margin goes to the manufacturer, it also helps keep upfront costs low since Fisker doesn’t have to invest in billion-dollar factories like Rivian or Tesla do.

However, there are still significant costs associated with running the business and the direct sales model, which is difficult for Fisker to scale. To the point that Fisker recently announced its withdrawal from the model, saying the company would bring in dealer partners to help sell its auto inventory — which was estimated to be worth about $530 million as of March 1.

But today, Fisker suffered another blow, in the form of a report in the Wall Street Journal claiming that the company has hired financial advisor FTI Consulting to assist with a possible bankruptcy filing. As a result of the report, Fisker (FSR) shares are currently down 45% in after-hours trading.

Electrek’s Take

WSJ has found “people familiar with the matter,” and while the outlet generally has good corporate reporting, one must also consider its history of spreading climate disinformation. After all, it is owned by a climate denier, Rupert Murdoch, who does meddle with his media to push an anti-environmental agenda. For example, in the same article, WSJ falsely claims that demand for electric cars is “sputtering,” even as electric car sales continue to rise.

Despite this particular inaccuracy, there are still factual issues with Fisker, so it’s credible enough that the company is seeking advice, especially after its recent quarterly report warning that this could be possible. As far as we understand, this doesn’t mean Fisker is either necessary to file for bankruptcy, but rather look for an analysis of whether this would be the most beneficial path forward. We need to stay informed and find out what path the company decides to take.

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