Fisker (NYSE: FSR) stock soared 13% on Friday after the company dispelled bankruptcy rumors and outlined plans to secure capital and partner with a leading automaker.
Last week, The Wall Street Journal disclosed that Fisker (FSR) has enlisted the services of financial adviser FTI Consulting and law firm Davis Polk to aid in potential restructuring and bankruptcy proceedings.
Fisker had recently signaled significant financial distress, acknowledging “substantial doubt” about its ability to continue as a going concern upon submission of its 2023 financial statements. The company also announced plans to reduce costs and increase liquidity by implementing workforce layoffs, affecting around 15% of its employees. On March 1, the EV company announced that internal control reviews and a revenue-related material weakness would delay its 2023 Form 10-K.
However, in a bid to allay fears of an imminent bankruptcy, Fisker issued a response on Friday, vehemently denying such rumors. The company outlined ambitious plans to secure vital capital and revealed ongoing negotiations with a major auto company.
Fisker said,
“Fisker is focused on raising additional capital and engaging in a strategic partnership with a large automaker. The company is also continuing to pursue its shift to a Dealer Partnership model in both North America and Europe.”
Fisker added it typically refrains from addressing “market rumors and speculation” yet emphasizes its frequent collaboration with external advisors to oversee business operations and aid in formulating and implementing strategies.
Fisker (NYSE: FSR) Stock Performance
FSR stock surged 12.78% to close at $0.17 on Friday. The traders had exchanged hands with 380,657,510 (380.65 million) shares compared to the average daily trading volume of 60.44 million.
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