The electric vehicle (EV) startup, once backed by Leonardo DiCaprio and funded by some of the world’s most prominent venture capital firms, now faces a potential delisting from the New York Stock Exchange. But Fisker CEO Henrik Fisker says the company is “unapologetically focused on regaining compliance with the NYSE’s listing standards” and plans to do so, whether that involves a reverse stock split or otherwise.
Fisker shares are currently trading at less than $0.25, and the company has a six-month “cure period” to regain compliance with the NYSE’s rules before any delisting proceedings begin. The company can avoid the process altogether if it can regain compliance by having its stock close above $1 on average for 30 consecutive trading days. Companies typically use reverse stock splits to regain compliance with the minimum price requirement.
In the meantime, Fisker is working to produce its first EV- the Ocean SUV- and aims to start deliveries this year. The car has about 250 miles of range and will cost from $37,499 to $50,000 in base trim. The company has “approximately 65,000” reservations for the car, up slightly from about 60,000 as of the third quarter of this year. However, the vehicle won’t be available in the United States until 2025 and won’t qualify for any new U.S. government EV incentives.
However, the company has been plagued by delays since it began production in 2015. In November, Fisker canceled its plans to build the Ioniq SUV, which had been scheduled to enter the market this year. The company said it had shifted priorities due to an “overwhelming volume of orders for the Ocean SUV.”
In December, Fisker announced it would scale back production to prioritize liquidity and unlock more than $300 million of working capital. It also pushed back the launch of its second vehicle, the Pear, from next year to 2025.
The company’s business strategy centers around contract manufacturing its vehicles with outside companies, which can take advantage of the experience and production lines that larger automakers have built up over the years. Fisker relies on Magna Steyr to make its first Ocean SUV model. Magna has a long track record of supplementing production capacity for stalwarts like the BMW 5 Series sedan and lower-volume specialty cars like the Toyota Supra.
In the long term, Fisker hopes to build a portfolio of vehicles offering various power and range options to cater to different markets. One of its newest concepts, Ample, is designed to let drivers plug in and swap out their dead batteries at unique stations. It’s aimed at fleet operators who want to switch to electric vehicles without spending more or disrupting their operations. The Ample’s battery-swapping station will be automated and take a few minutes.