Stock Market

Fisker Stock Alert: Bankrupt Fisker Wants to Offload Its EVs for as Little as $2,500

Source: T. Schneider /

Fisker (OTCMKTS:FSRNQ) proposed a new deal to help raise the now-bankrupt company as much as $46.25 million to put toward its debts. Under this plan, Fisker would sell off its remaining inventory of Ocean SUVS to American Lease as a last-resort fundraising measure. Fisker stock is up about 2.5% as of this writing.

Investors will have to wait for Fisker’s requested hearing, tentatively set for July 9, to glean a better understanding of the proposed sale. For now, the proposed terms will provide some insight into Fisker’s priorities.

Last month Fisker first entertained the possibility of a fleet deal with American Lease. Per this week’s filing, American Lease remains interested in the fleet due to New York’s law requiring all ride-hailing vehicles to be electric within the next six years.

American Lease has agreed to buy Fisker’s entire inventory of vehicles intended for North America. It plans to pay $16,500 for each brand-new Ocean model in good working condition, which amounts to about 2,711 vehicles. It will also buy damaged vehicles for $2,500 a pop and $3,200 for previously titled vehicles.

Fisker Stock Eases Into Irrelevancy Amid Bankruptcy Navigation

It’s been a fast fall for Fisker over the past several years. Indeed, since Ocean deliveries started in the summer of 2023, the company has faced a near-constant string of hardship.

Earlier this year, in an effort to dodge bankruptcy, Fisker slashed the prices of its vehicles by as much as $24,000. Unfortunately, it was akin to putting a band-aid on a bullet wound.

In June, Fisker filed for Chapter 11 protection, putting the future of the Ocean up in the air. Many owners continue to wonder whether they will receive repairs, parts, or new software from Fisker in the wake of its bankruptcy. For its part, American Lease plans to salvage parts from the damaged Oceans it purchases.

Additionally, the proposed deal explicitly states that Fisker “shall have no obligation to update the vehicles beyond Software v.2.1.”

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

Source link

Share with your friends!

Leave a Reply

Your email address will not be published. Required fields are marked *

Sign up now for breaking stock alerts

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.