SUBSCRIBE TO NEWSLETTER
Stay in the loop! Subscribe to our newsletter and gain access to exclusive insights, trends, and news from the world of business and leadership. Don’t miss out!
Fisker, the electric vehicle startup renowned for its Ocean electric SUV, has received a non-compliance notice from the New York Stock Exchange (NYSE) due to its stock price closing below $1 for 30 consecutive trading days.
This development underscores the challenges facing the Manhattan Beach-based company, which is navigating operational and regulatory hurdles.
Risk of Delisting and Compliance Measures:
Non-compliance with NYSE regulations poses the risk of delisting, prompting companies to consider reverse stock splits to meet minimum price requirements.
However, Fisker reassures investors that the notice does not immediately trigger delisting, providing a six-month window to regain compliance.
Delivery Struggles and Production Realities:
Despite producing over 10,000 vehicles in 2023, Fisker fell significantly short of its initial delivery projections, with only about 4,700 vehicles reaching customers.
The company’s efforts to scale deliveries include expanding dealership networks alongside its direct-to-customer distribution model, reflecting ongoing challenges in meeting customer demand.
Safety Concerns Prompt Regulatory Scrutiny:
In a separate development, the U.S. National Highway Traffic Safety Administration (NHTSA) has started a preliminary probe into claims of unintended vehicle movement in approximately 4,000 Ocean SUVs.
This investigation adds to the regulatory scrutiny surrounding Fisker’s operations and underscores the importance of addressing safety concerns promptly.
