EV maker Fisker’s stock dives after company reportedly explores bankruptcy

Electric vehicle company Fisker’s stock plunged more than 40% in after-hours trading on Wednesday amid investor concern about the company’s ability to stay in business.

Electric vehicle company Fisker’s stock plunged more than 40% in after-hours trading on Wednesday as investor concern about the company’s ability to stay in business intensified. On Wednesday, the Wall Street Journal, citing people familiar with the matter, reported that Fisker had hired restructuring advisors to work on a potential bankruptcy filing. Fisker declined to comment on the report, but earlier this month, the EV maker warned that it might not have enough money to survive another year. In its fourth-quarter earnings report, released in February, the company said there was “substantial doubt about Fisker’s ability to continue as a going concern.” At the time, Fisker said it was in discussion with an existing investor about possibly putting more money into the company to keep it afloat. The automaker said it would also lay off 15% of its workforce to cut costs. Fisker, which sells the Ocean electric SUV, has an unusual business model in which it has entirely outsourced the manufacturing of the one model it currently sells. The Ocean is built in Austria by Magna, a company that has also built vehicles for Mercedes-Benz, BMW and Jaguar.