Another EV startup gets stern Nasdaq warning

More bad news for Californian EV startup Fisker, as it now faces a possible delisting from the Nasdaq due to low stock prices for 30 consecutive days.

Fisker reports that it has received a non-compliance notice from the New York Stock Exchange as its stock had closed below around $1 for 30 straight trading days, reports Automotive News. Failure to comply can lead to a delisting, but Fisker has six months to regain compliance.

The road hasn’t exactly been smooth for Fisker, which has faced a long line of issues and delays last year in getting its EVs to customers who had paid for them.

Last year, Fisker cut its production forecast multiple times due to issues ranging from supply chain problems to internal issues. In response to Tesla’s price slashing last year too, Fisker reduced the price of its luxury Ocean Extreme SUV by $7,500, from $68,999 to $61,499.

The company made more than 10,000 EVs last year, well below the 42,400 originally promised, but it delivered only about 4,700. Still, its stock price soared at the end of last year as a result. To help ramp up deliveries, Fisker has been adding dealership alongside its direct-to-consumer model.

In a separate issue, the US National Highway Traffic Safety Administration said on Friday that it was investigating claims about “unintended vehicle movement” in some 4,000 Ocean EVs.

To rub salt into the wound, YouTuber Marques Brownlee (MKBHD) just said that the Fisker Ocean is the “worst car he’s ever reviewed.” In his Auto Focus channel, he said the Ocean – which is designed by legendary car design Henrik Fisker – might be the “single weirdest automotive reviewing experience” he has ever had – adding that he wouldn’t drive the car even if he got it for free. Ouch.

Still, Electrek’s Jameson Dow got some time with the Ocean and came away “impressed by a few things” but overall thought the car wasn’t quite ready for prime time.  Read the details here.

Electrek’s Take

Well, it’s been a rough road for Fisker, but it’s not alone as smaller EV players are feeling the heat of tough competition and rising interest rates, among other obstacles. California’s Faraday Future, which has just relaunched delivery of its luxury $309,000 electric car, recently got its own warning from Nasdaq due to plummeting share price. Meanwhile UK startup Arrival was delisted last month for being late in posting financial results and failing to file a remediation plan and hold an annual shareholder meeting. Fisker still has a chance to turn it around, and we’ll stayed tuned to how it unfolds.