Fisker Faces Delisting Threat from NYSE as Stock Stays Below $1

Electric vehicle startup Fisker faces the risk of delisting from the New York Stock Exchange (NYSE).

On the 17th (local time), Reuters reported that Fisker had received a delinquency notice from the NYSE because its stock had closed below $1 for 30 consecutive trading days.

Fisker stated that this non-compliance notice is the most recent issue among several problems they face in their EV business.

If a company fails to comply with the NYSE’s regulations, it can be delisted, so companies typically use reverse stock splits to meet the minimum price requirement.

According to Thomson Reuters, Fisker stated that this notice will not lead to an immediate delisting from the exchange, and they have six months to regain compliance.

Fisker produced more than 10,000 vehicles last year but only delivered about 4,700, a quarter of their initial estimate.

In response, Fisker is adding dealerships and a direct-to-consumer distribution model to increase deliveries.

Additionally, the National Highway Traffic Safety Administration (NHTSA) in the U.S. initiated a preliminary investigation on Friday into allegations of unintended vehicle movement in about 4,000 of Fisker’s Ocean SUVs.