It’s not good news for electric vehicle stock Fisker (NYSE:FSR), as reports have emerged noting that the stock is “fighting for survival.” It’s actually reached the point where its former CEO, Henrik Fisker, is coming back to help pull the company out of its nosedive. The news wasn’t enough for investors, though, who sent shares down nearly 3% in Friday afternoon’s trading.
Fisker’s troubles are serious, as it continues to burn a lot of cash despite a ten-figure debt load. Yes, Fisker has over $1 billion in debt outstanding right now. Fisker even issued a “going concern” alert during its fourth-quarter earnings, which is generally not done unless a company is on the brink of ultimate catastrophe. Guidehouse Insights’ principal research analyst, Sam Abuelsamid, declared he would not be “…the least bit shocked if Fisker is bankrupt before the end of 2024.”
Fisker Offers Deep Discounts
Fisker is currently working on clearing out its 2023 models to the point where they’re offering some pretty deep discounts just to turn cars into cash and pare down that massive debt load. Still, it’s likely going to be a big ask; those bonuses lower the cost of a 2023 Fisker Ocean Extreme down to $53,889.
Meanwhile, Fisker is also fighting negative reviews. After YouTuber Marques Brownlee borrowed a Fisker and declared it “…the worst car I’ve ever reviewed,” Fisker tried to track him down in a bid to get Brownlee to review the car again, this time with a major software update included.
Is Fisker a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on FSR stock based on five Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 94.06% loss in its share price over the past year, the average FSR price target of $1.11 per share implies 189.67% upside potential.
