Fisker (US:FSR) Investor Place·2024-06-18 13:25Core Insights - Fisker, an electric vehicle company, is facing significant challenges as it attempted to enter a market that is shifting towards lower-priced vehicles [1][4] - The company has filed for Chapter 11 bankruptcy protection in Delaware, indicating a critical financial situation [6] - Henrik Fisker, the founder, has a history of failed ventures in the automotive industry, with his previous company, Fisker Motors, going bankrupt in 2013 [2] Company Overview - Fisker began production of its Ocean model in 2022 through a partnership with Magna International, a contract manufacturer [3] - The company had plans for a lower-cost model called the Pear, which was expected to be produced by Foxconn starting in 2024 [3] Financial Performance - As of June 18, Fisker stock was trading at 2.6 cents per share, with a market capitalization below $22 million, reflecting a 42% drop in pre-market trading [10] - In 2021, Fisker stock was valued at $14 per share, with a market cap of $4.29 billion, indicating a significant decline in value over time [8] Strategic Moves - In late 2023, Henrik Fisker described reports of the company's problems as "overblown" and announced plans to sell remaining inventory in January 2024 [12] - The company also introduced a dealership strategy aimed at moving its vehicles in February [12] Historical Context - Fisker completed a merger with Spartan Energy, a special purpose acquisition company, in 2020, raising $1 billion intended for the Ocean electric SUV [11]