Growing Concerns Over Electric Vehicle Growth... "US Fisker Prepares for Bankruptcy Proceedings"

Amid growing global concerns over the slowdown in electric vehicle growth, reports have emerged that Fisker, a US-based electric vehicle startup, is preparing for bankruptcy proceedings.

Image source=Fisker official website

The Wall Street Journal (WSJ) reported on the 13th (local time) that Fisker, facing a liquidity crisis, recently signed contracts with financial advisory firm FTI Consulting and law firm Davis Polk to prepare for potential bankruptcy risks.

Earlier, the company announced at its earnings report last month that its revenue for the previous year was $273 million, with debts amounting to $1 billion. It also warned of "significant doubts" about its ability to continue operations and confirmed that it is negotiating to attract new investments from investors.

Founded by Danish automotive designer Henrik Fisker, Fisker was once considered one of the major electric vehicle startups aspiring to become the next Tesla. However, amid a slowdown in electric vehicle demand and intensified market competition, the company faced financial difficulties due to a combination of production issues and regulatory investigations stemming from technical defects.

Fisker had previously closed below $1 per share on average for 30 consecutive days, receiving a regulatory violation notice from the New York Stock Exchange. This could lead to delisting in the future. Following the WSJ report about preparing for bankruptcy, Fisker's stock closed the regular trading session at around $0.17 per share, down more than 46% from the previous trading day on the New York Stock Exchange.

These reports are particularly notable given the global concerns over the slowdown in electric vehicle growth and the anticipated offensive from Chinese electric vehicle manufacturers emphasizing cost-effectiveness. Leading automakers such as Ford, General Motors (GM), and Volkswagen have already begun to slow down their electric vehicle transition pace. Ford's Chief Operating Officer (COO), Jim Farley, told CNBC, "(Electric vehicle sales) are still growing, but not at the pace seen in 2021-2022."

Concerns surrounding Tesla, the leading electric vehicle company, also persist. Wells Fargo downgraded Tesla's investment rating to 'sell,' stating that Tesla's sales are expected to decline starting next year. Tesla's stock has fallen more than 30% this year and dropped over 4% on the day. As concerns over electric vehicle growth intensified, other electric vehicle companies such as Rivian, Lucid, and Nikola also fell by 3-5% on the same day.

Meanwhile, U.S. Treasury Secretary Janet Yellen stated that electric vehicle investments have accelerated due to the Biden administration's policies. This statement is interpreted as an effort to promote the achievements of "Bidenomics" (Biden + Economics) ahead of the November presidential election.

This content was produced with the assistance of AI translation services.