The New York Stock Exchange announced Monday that it will immediately suspend trading in shares of EV startup Fisker and is moving to delist the company.
The stock exchange said Monday that Fisker’s stock is “no longer suitable for listing” due to “unusually low” price levels. The decision comes a month after Fisker was warned by the NYSE that its share price had spent 30 days trading below $1, putting it out of compliance with stock exchange rules.
Fisker may review the NYSE’s determination, but said Monday afternoon archiving that it expects its stock to be transferred to an over-the-counter market such as OTC Pink. It also said the write-off has triggered repayment clauses on two outstanding loans it cannot afford, which could have a “material adverse effect” on the business.
The suspension caps a tumultuous day for Fisker, which saw shares fall more than 28% before trading was halted. Earlier on Monday, Fisker announced it had lost a potential deal with a major automaker, reported to be Nissan — a development that also jeopardized a recently announced attempt to secure emergency financing.
The company did not explain why the automaker ended negotiations, which were a critical condition for closing a potential $150 million convertible note announced last week. Fisker said in the filing that it will ask the unnamed investor to waive the closing condition.
Fisker’s problems, which include customer complaints, lawsuits and federal investigations, have been escalating for months. The embattled EV startup struggled to sell its Ocean SUV at first, falling short of its own internal sales targets, as TechCrunch reported in January. It moved away from a direct sales model and turned to dealerships to help drive sales. It also faced quality issues — ones that Fisker has, at times, struggled to solve, according to internal documents.
In February, Fisker laid off 15% of its staff (about 200 people) and last week reported that it had just $121 million in the bank. The company has halted production and warned investors that it would not survive a year without a new cash injection.
This story has been updated to include details from Fisker’s Monday afternoon filing with the SEC.
