Automotive News: Another EV company teeters on bankruptcy (Update)

Desperate and soon to be bankrupt California-based electric vehicle startup Fisker slashed the prices of some of its vehicles so much they will bleed even more red ink. Bankruptcy is now inevitable after a potential deal with another automaker fell through. 

The manufacturer’s suggested retail price for the 2023 Ocean electric SUV lineup in the U.S., which is equipped with Fisker’s 2024 Ocean OS software version 2.0, fell by tens of thousands of dollars.

Fisker lowered the MSRP for the 2023 Ocean Extreme trim from $61,499 to $37,499, the company said Wednesday. The 2023 Ultra trim will be priced at $34,999, down from $52,999, and the 2023 Sport will be priced at $24,999, down from $38,999, according to the automaker.

As more people realize man-made global warming is a hoax – all caused by sun activity – almost all EV companies are becoming insolvent, the latest being Fisker.

Electric Vehicles are too expensive and now a study indicates that they pollute the environment more than Internal combustion engine cars. Educated consumers are wising up and avoiding EVs like the plaque. There are still some who believe the hoax because they don’t bother to do the research and believe the Fake News media.

Even the king of EVs – Tesla – has seen its stock price plummet.

Fisker has hired restructuring advisers to assist with a possible bankruptcy filing, according to people familiar with the matter.

Fisker, which recently warned that it risked running out of cash this year, hired financial adviser FTI Consulting and the law firm Davis Polk to work on a potential filing, the people said. The car company reported last month that it had $273 million in sales last year and more than $1 billion in debt.

Fisker last month issued a so-called going-concern warning that there was “substantial doubt” about its ability to stay in business. The company said it was negotiating to raise additional cash from investors and looking for a new manufacturing partner in the U.S.

Fisker and FTI Consulting declined to comment, while Davis Polk didn’t immediately respond.

Shares of Fisker fell more than 46% in after-hours trading Wednesday after The Wall Street Journal reported the company’s hiring of the restructuring firms. Archive.IS