Toronto, Ontario — In this weekly Tuesday Ticker, Fisker is delisted from the New York Stock Exchange and makes some bold reactionary measures, including price cuts of up to 39 percent; plus, the Port of Baltimore closure following the Francis Key Scott Bridge closure threatens to wreak havoc on the parts supply chain.
Fisker faces rough oceans
Fisker is facing rumoured bankruptcy, according to some market analysts, as the electric vehicle (EV) automaker slashes prices on its all-electro Ocean SUV just days after the New York Stock Exchange deemed the OEM “no longer suitable for listing based on abnormally low price levels.”
Shares of Fisker traded at US$0.09 before the NYSE halted trading, and closed at US$0.13 last Friday.
The EV maker cut prices on its 2023 model year Ocean electric SUV last week, from US$61,499 to US$27,499. It also reduced prices on the Ultra trim and Sport levels, with each now cashing in at US$34,999, down from US$52,999 and US$24,999, down from US$38,999, respectively.
Fisker said it “is strategically positioning the all-electric Ocean SUV to be a more affordable and compelling EV choice.”
Some market analysts suspect Fisker could go bankrupt, with Thomas Hayes, a chairman at hedge fund Great Hill Capital, telling Fox Business that, “it’s sad to see any company go bankrupt, but we expect to see more of them in the EV space.”
He added that, “in the EV space—over time—there will be Tesla and the major incumbent ICE-producing OEMs left standby, namely those OEMs who continue to choose to, or are forced by governments, to produce EVs.
“I can’t put it if it is next week or next year, but it is inevitable,” Hayes told Reuters when asked about the chances of Fisker’s likelihood to file for bankruptcy protection.
A filing from the U.S. Securities and Exchanges Commission also reveals that Fisker’s discussions to make a deal with another automaker had been terminated on March 22, forcing Fisker to seek strategic alternatives.
Fisker paused production for six weeks beginning March 18. The automaker said it had just US$121 million in cash and cash equivalents.
Ports and parts
Last week’s collapse of Maryland’s Francis Key Scott Bridge could have an effect on the auto industry’s supply chain, as the Port of Baltimore remains closed for cleanup.
U.S. President Joe Biden said last week that around 850,000 vehicles pass through the Port of Baltimore every year. He added that federal resources have been sent to aid the emergency response.
General Motors, Ford, Stellantis, Volkswaken, Mercedes-Benz and BMW are some automakers that use the port. Maryland’s Governor’s Office said in February 2024 that the Port of Baltimore leads the United States in terms of automotive movement, and has for the last 13 years.
U.S. Transportation Secretary Pete Buttigieg told CNN that “the impact of this incident is going to be felt throughout the region and really throughout our supply chains.”
“We are talking about the biggest vehicle handling port in the country that is now out of commission until that channel can be cleared.”
