Fisker stock alert: Fisker Austria initiates insolvency proceedings

Oppressed electric vehicle (EV) manufacturer. Fisker (OTCMKTS:FSRN) announced on Tuesday that it would file a restructuring application under the Austrian Insolvency Code. As expected, Fisker shares have fallen on the news and are down about 13% at the time of this writing.

So what do you need to know about Fisker lately?

Well, the electric vehicle maker’s path to bankruptcy is becoming increasingly clear. In fact, the self-managed restructuring process will allow Fisker Austria to maintain its integrity while attempting to increase its value or sell its assets.

Although this ensures the continued existence of the company and the payment of employees, it essentially confirms the company’s insolvency development.

Today’s news serves as a follow-up to reports released just days earlier that Fisker will close its Manhattan Beach headquarters to transition from its direct-to-consumer business model to a dealer partnership sales structure. This also follows the closure of Fisker’s New York showroom.

However, Fisker recently announced the addition of six new dealer partners in the US. With these new dealers, the company has a total of 24 dealer locations, 12 of which are in Europe.

According to Fisker, Fisker sold 80 vehicles in the first quarter, bringing its sales to 110 vehicles since the beginning of 2024 EV.

Fisker shares continue to slide amid financial pressure

With today’s decline, Fisker shares will only slide further into the red this year. In fact, shares are down a staggering 97.5% so far this year, despite rising 96% in the past month.

FSRN shares are now trading on over-the-counter “pink sheets” after being delisted New York Stock Exchange due to the inability to meet the minimum share price requirements. At the time of writing, Fisker is trading at around 4 cents per share.

The failing company is one of the most obvious victims of this year’s electric vehicle slump. In fact, EV companies appear to be in decline across the board as vehicle sales collapse. This also includes those like Tesla (NASDAQ:TSLA), Nio (NYSE:NOK) and many others.

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At the time of publication, Shrey Dua did not hold, directly or indirectly, any positions in any of the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication policies.