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The New York Stock Exchange has begun the process of delisting Fisker (FSR) and triggered an immediate repurchase obligation for its 2026 bonds. The EV maker has warned investors that it could default on this requirement, which could also result in the company defaulting on its 2025 notes.
Yahoo Finance reporter Pras Subramanian joins the live show to discuss Fisker’s decline and what to expect from the company.
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
Editor’s note: This article was written by Nicholas Jacobino
video transcript
Madison Mills: The EV maker is warning of a possible default after the New York Stock Exchange announced it had begun the process of delisting the stock. Here’s Yahoo Finance reporter Pras Subramanian to explain this in detail. And plus, what’s going on with Fisker?
Pras Subramanian: Yeah. As you know, it is currently not trading. It has been delisted. We plan to move to the OTC market soon. But yeah. That means the stock price has been below $1 since January. Not so — the delisting isn’t all that surprising. But I think the warning they put out is a bit surprising, that the delisting will require them to buy back some of their 2026 notes that are due immediately. And that would cause them to default to 25–20, 25 bills due soon. So it’s almost like a domino effect for Fisker here, where they need to increase their liquidity, but then those redemptions will also take a hit. And, you know, this reminds me of the LA Auto Show 2021. I was there when they debuted the Fisker Ocean and it seemed like the busiest part of the show. It was packed. I was mangled. We spoke with Enrique there. He was totally excited. The car looked great. And if you look at where we are now, almost three years later, it seems like a sad story of what’s going on with Fisker.
Madison Mills: So what happens next?
Pras Subramanian: I don’t know. I think IP is quite valuable. So if someone files for bankruptcy, they will get it at some point. Maybe we can rebuild our capital. I don’t know. However, I think what will happen is that it will be sold to another company. And his last company was sold to a Chinese company, but they kept the same design and called it a different name like Revero or something. But that’s exactly the Fisker car from 10 years ago. So it might happen again, I don’t know. I don’t really understand.
Sheena Smith: Yes, certainly. Well, let’s see what happens with Fisker. I mean, we’ve talked a lot over the last few months about the end of this company’s collapse and all the uncertainty going forward at this point, especially with what happened yesterday with the delisting. Okay, plus. thank you.
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