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Fisker Stock Alert: Fisker Is Prepping for Bankruptcy With 30-Day Countdown

Fisker stock - Fisker Stock Alert: Fisker Is Prepping for Bankruptcy With 30-Day Countdown

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Today, investors are asking an important question: Is Fisker (OTCMKTS:FSRN) going bankrupt? After surging last week despite the threat of bankruptcy, Fisker stock is now in a race to the bottom. Shares of FSRN plunged over 30% today, and a new report from Reuters reveals the compelling reason why.

Specifically, this troubled electric vehicle (EV) maker appears to be on the verge of filing for bankruptcy protection. Indeed, unless Fisker can find “relief from its creditors and enough liquidity to meet its current debt obligations” within 30 days, the cash-strapped firm will be forced to take the Chapter 11 route.

What’s Happening With Fisker Stock?

Fisker’s recent performance can only be described as a wild ride. The company has been plagued by problems since the start of 2024, including misplacing customer payments and losing out on a potential partnership with a much larger automaker. This resulted in Fisker stock losing its spot on the New York Stock Exchange.

A recovery for the company hasn’t seemed likely since the delisting. But now there is even a ticking clock on Fisker’s downfall. As TechCrunch reports:

“The imperiled company said in the regulatory filing Tuesday it had just $54 million in cash and equivalents as of April 16, and another $11.2 million that can’t be immediately accessed. Fisker said in the filing that it’s currently trying to raise money to pay off a loan that it defaulted on in order to avoid bankruptcy. The outstanding balance as of mid-January was north of $300 million.”

This sounds like a truly bleak landscape for a company whose prospects haven’t looked good for a while. Of course, the news shouldn’t come as a shock to investors. But now the threat of bankruptcy has become much more real. Accordingly, anyone still holding a position in FSRN stock will likely run the other way while they still can.

The Road Ahead

Some contrarian investors may speculate that Fisker stock could randomly turn around and start rising again. But to make such a bet would mean disregarding the many strikes against this company — a list that seems to only be growing.

Now that bankruptcy is closing in, there’s even less reason to take a chance on FSRN. While interest in the company remains high, trading also remains volatile. Although Fisker could theoretically find a new partner or some other solution before the 30-day mark, given its track record, that doesn’t seem likely at all.

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Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Samuel O’Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.

Read More: Fisker Stock Alert: Fisker Is Prepping for Bankruptcy With 30-Day Countdown

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