Fisker (NYSE: FSR) stock took a nosedive on Tuesday amid concerns of potential delisting after receiving a non-compliance notice.
Fisker (FSR), the once-prominent electric vehicle (EV) startup, is teetering on the brink of losing its coveted spot on the New York Stock Exchange (NYSE). Following its public introduction in October 2020, Fisker experienced remarkable growth. However, since reaching its zenith in early 2021, the stock value of FSR has gradually eroded, plummeting from nearly $30 per share to less than $1.
The difficulties of the company are now becoming more apparent. Fisker has been issued a non-compliance notice from the NYSE due to its inability to maintain a trading value above the $1 threshold for 30 consecutive days. If the stock fails to reverse this downward trend, it risks being delisted from the exchange.
While such a warning does not necessarily spell doom for a stock, Fisker’s precarious position has shaken investor confidence in its ability to stage a recovery. Considering the struggles of FSR stock, even amidst a robust EV market, it may prove particularly challenging for investors to continue their support.
What’s Happening with Fisker Stock?
The potential delisting has further exacerbated the situation for FSR stock, which saw a 14% decline to close at $0.63 on Tuesday. This performance is consistent with its trend over the past two quarters. In the preceding six months, the shares have plunged more than 80%, descending into what can aptly be termed the “danger zone.” Currently, FSR stock trades at 63 cents per share, which suggests it needs significant momentum to reach the $1 mark.
Fisker (NYSE: FSR) has lacked positive momentum for several months. It now has a six-month window to regain compliance with the NYSE. Although not an impossibility, it appears to be an unlikely scenario. The previous year has been predominantly problematic for FSR stock, as reported by Electrek:
“Last year, Fisker cut its production forecast multiple times due to issues ranging from supply chain problems to internal issues. In response to the price slashing last year of Tesla too, Fisker reduced the price of its luxury Ocean Extreme SUV by $7,500, from $68,999 to $61,499.”
The mounting challenges faced by Fisker have led many experts to adopt a pessimistic view of FSR stock. Louis Navellier of InvestorPlace recently advised investors to sell the stock, pointing to the overwhelming debt of the company. Wall Street analysts also echoed this sentiment. In the past week, Goldman Sachs and Barclays have issued bearish ratings, labeling FSR as a “sell.”
Fisker still has the opportunity to reclaim a $1 valuation and maintain it. However, should experts persist in losing confidence, investors may follow suit. Even its former meme-stock allure fails to bolster the company’s current plight. FSR stock is not defunct yet, but if circumstances don’t significantly shift soon, it may likely trade over the counter.
Fisker (NYSE: FSR) Stock Performance
Fisker stock plummeted 13.83% to close at $0.63 on Tuesday. The traders had exchanged hands with 48,544,396 (48.54 million) shares compared to the average daily trading volume of 35.20 million.
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