Fisker plunges 55%, drags EV shares lower as it reportedly considers bankruptcy.

• Fisker’s stock fell 55% on Thursday after reports said it was considering bankruptcy.
• The troubled EV company has seen its shares tumble 92% year to date.
• Fisker’s sharp decline dragged down other EV stocks such as Tesla, Rivian and Lucid.

Fisker the stock fell to 55% on Thursday after The Wall Street Journal reported that the company is considering filing for bankruptcy.

Fisker has been one of the many electric car companies that has yet to achieve the kind of success that their biggest competitor, Tesla, has been able to achieve.

The company, which operates a light asset model that builds vehicles and then distributes them to OEMs, has struggled with low sales amid a sharp decline in demand for EVs.

In 2023, the company produced 10,142 units of its flagship Ocean vehicle, and delivered 4,700 of them to customers. Fisker’s stock is down 92% year to date.

According to The Wall Street Journal, the cash crunch led the EV company to hire a financial advisor and law firm to help navigate a possible bankruptcy filing.

Fisker lost $762 million last year on sales of $273 million, and had more than $1 billion in debt.

Not helping Fisker’s situation in recent weeks has been Fisker Ocean review by popular YouTube reviewer Maques Brownlee, who called it “the worst car I’ve ever reviewed.”

Fisker’s decline on Thursday dragged down the entire EV industry, which is made up of a handful of smaller companies and Tesla.

Tesla the stock is down 4 percent, Rivian decreased by 9%, and Lucid down 6% in Thursday’s trading.

Slower-than-expected growth in the US EV market has extended a multi-year decline in the EV industry, which culminated in late 2021 when Rivian went public at a valuation that was briefly north of $150 billion. Today, Rivian is worth just $10 billion.

US-based EV companies not only have to compete with China’s BYD, which has been flooding the global market with low-cost electric sedans, but also with hybrid cars, which have seen a jump in sales in the United States while consumers continue to face EV range concerns.