Stock Market

Fisker Stock Alert: NHTSA Opens Preliminary Probe Into Fisker Brake Issue

Source: Kittyfly / Shutterstock.com

Fisker (OTCMKTS:FSRN) is back in the hot seat after the National Highway and Traffic Safety Administration’s (NHTSA) Office of Defects Investigation (ODI) disclosed a preliminary evaluation (PE) into the 2023 Ocean SUV concerning its automatic emergency braking (AEB). Based on eight complaints, the ODI noted that the AEB system inadvertently activates when there is nothing in front of the vehicle, resulting in sudden deceleration.

“The braking applications range from momentary, partial application resulting in rapid loss of speed to full application, which brings the vehicle to a complete stop in the travel lane,” wrote the ODI. “Three of the complaints alleged an injury.”

The Fisker Ocean is the company’s only vehicle, and it is currently undergoing four open NHTSA investigations, all of which were opened this year.

Fisker stock is down by 97% this year and about 2% today.

Fisker Stock: NHTSA Opens Preliminary Probe Into Fisker Brake Issue

This is the second PE of the Ocean’s brakes. The first, opened on Jan. 11, alleged a “partial loss of braking over low traction surfaces, without alerting the driver” based on nine complaints. One of the complaints involved a crash and injury.

The Ocean’s other two PEs involve 14 complaints about an inability to open its doors and 4 complaints, including an injury, involving unintended vehicle movement based on the Ocean failing to shift into the proper gear.

Fisker has also previously received several user complaints about its software and Bluetooth system. The company noted that the release of Ocean OS 2.0 has fixed many of these issues.

The fourth investigation comes at a time when Fisker is struggling to stay afloat. On March 18, the electric vehicle company announced that it would pause production of the Ocean for six weeks in order to align its inventory levels with demand. About a week later, Fisker slashed prices for the Ocean by up to 39%. That comes after the company produced 10,193 Oceans in 2023 but only delivered 4,929 of them.

Last week, Ocean contract manufacturer Magna Steyr (NYSE:MGA) revealed that production of the vehicle is “idle,” despite the six week production pause ending on April 29. With all of the bad news adding up, the future of Fisker is unclear as ever.

On the date of publication, Eddie Pan 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 InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Source link

Share with your friends!

Leave a Reply

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

Get the latest stocks updates
straight to your inbox

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

Thank you for subscribing.

Something went wrong.