NYSE Sends Fisker Non-Compliance Notice Over Stock Price

Fisker Receives Non-Compliance Notice from NYSE

Electric vehicle startup Fisker revealed on Friday that it had received a non-compliance notice from the New York Stock Exchange (NYSE) due to its stock closing below $1 on average for 30 consecutive trading days.

Implications of Non-Compliance

This non-compliance could potentially lead to a delisting from the stock exchange, forcing Fisker to consider using reverse stock splits to regain compliance with the minimum price requirement set by the NYSE.

Fisker’s Response to the Notice

Fisker remains optimistic, stating that the notice will not immediately lead to a delisting, offering the company a six-month grace period to rectify the situation and regain compliance.

Fisker’s Ongoing Struggles

This latest challenge comes at a difficult time for Fisker, as the company has been grappling with difficulties in delivering its electric vehicles to customers.

Limited Vehicle Delivery

Despite aiming to produce over 10,000 vehicles in 2023, Fisker fell short of this target, delivering only about 4,700 vehicles to customers. The company has been working to expand its network of dealerships to improve its delivery capabilities.

NHTSA Preliminary Probe

In an additional setback, the U.S. National Highway Traffic Safety Administration (NHTSA) announced it has initiated a preliminary probe into claims of unintended vehicle movement in approximately 4,000 Ocean SUVs manufactured by Fisker.

This provides further insight into the challenges faced by Fisker, and the steps the company is taking to address them in a timely and effective manner.

The company’s response to these issues will undoubtedly be closely monitored by investors and industry observers, as Fisker works to overcome these obstacles and establish itself as a prominent player in the electric vehicle market.