©Reuters. Why is Fisker stock up 35% today?
U.S. electric vehicle (EV) startup Fisker (NYSE:) saw its stock price plummet more than 35% earlier this week after reports the company had hired restructuring advisors in the face of possible bankruptcy.
The company, which faces the risk of running out of cash by the end of the year, has engaged financial consulting firm FTI Consulting and law firm Davis Polk to explore legal options for potential bankruptcy proceedings.
But the stock rebounded sharply in pre-market trading on Friday after the automaker announced it was moving forward with a business plan to raise capital and was in talks with major car companies.
“Fisker is focused on raising additional capital and forming strategic partnerships with major automakers. The company also continues to pursue a transition to a dealer partnership model in both North America and Europe.” the companies said in a statement Thursday.
FSR rose 35.1% in Friday's pre-market.
“As a matter of company policy, Fisker does not comment on market rumors or speculation,” Fisker said. “However, Fisker often works with external advisors to assist with business management and to assist with strategy development and execution,” he added.
Last month, Fisker issued a “going concern” warning, indicating the company could run out of cash by the end of the year. In late February, Fisker postponed releasing its full 2023 financial results, citing a lack of sufficient accountants.
