Fisker set for possible default, stock enters NYSE delisting
New York Stock Exchange began processing Fisker's (FSR) delisting, triggering a requirement to repurchase 2026 notes that became immediately due. The EV maker has warned investors of a possible default on this requirement, which would also cause the company to default on the 2025 notes.
Yahoo Finance Reporter Pras Subramanian joins the Live show to discuss Fisker's decline and what to expect for the company.
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Editor's note: This article was written by Nicholas Jacobino
Video Transcript
MADISON MILLS: The EV maker is warning of possible default after the New York Stock Exchange saying it's beginning to process a delisting of that stock. To break this down for us, we have Yahoo Finance reporter Pras Subramanian. And Pras, what's going on with Fisker?
PRAS SUBRAMANIAN: Yeah. You know, it's not trading right now. It's been delisted. It's going to move over to OTC markets soon. But, yeah. I mean, stock has been below a dollar for since January. So not-- The delisting is not really a surprise. But I think what is-- what is a warning that they gave is kind of surprising is that the delisting is triggering a requirement to repurchase some 2026 notes that become immediately due. And that will cause them to default on 25-- 20, 25 notes that become immediately due. So it's almost like a domino effect for Fisker here, trying to-- They need to raise liquidity, but then they're also going to be hit with these redemptions. And, you know, this reminds me of-- of the LA Auto Show 2021. I was there when they debuted the Fisker Ocean, and that was like the buzziest part of the show. It was packed. It was mobbed. We spoke to Henrique there. He was all excited. The car looked great. And then to see where we are now from almost-- almost three years from now from then, it just seems it's a-- it's a sad tale of what's going on with Fisker.
MADISON MILLS: So what happens next?
PRAS SUBRAMANIAN: I don't know. I think that IP is pretty valuable. So someone will get it at some point if they do file for bankruptcy. Maybe they can recapitalize. I don't know. But I think what's going to happen it's going to be sold to another company. And his last company was sold to a Chinese company, and they-- they kept the same design and called it something else like the Revero or whatever. But it's the exact Fisker car from 10 years ago. So maybe we'll see that happen again, but I don't know. I'm not sure.
SEANA SMITH: Yeah, certainly. Well, we will see what happens with Fisker. I mean, we've talked time and time again over the last several months just about the demise of the fall of this company and all the uncertainty ahead at this point and now especially following what happened yesterday with the delisting. All right, Pras. Thanks.
