• Price fell to 9 cents before shares were halted Monday morning
  • EV maker’s talks with automaker for investment were terminated

The New York Stock Exchange announced Monday it was suspending trading of Fisker Inc. stock after the electric vehicle startup’s shares sank following news that it would not be getting an investment from a major automaker.

The NYSE said in a statement that Fisker shares were “no longer suitable for listing based on ‘abnormally low’ price levels” and trading would be suspended immediately. Before trading was halted at 9:35 a.m. Monday, Fisker shares fell 28% to 9 cents. The stock has dropped 95% since the start of the year.

Earlier Monday, Fisker said in a regulatory filing that talks with a major automaker about an investment were terminated without a deal, which means the company needs to renegotiate terms for recent financing or face the possibility of seeking “a strategic transaction in bankruptcy protection.”

Fisker said March 18 that it had secured a commitment of $150 million in financing from an existing investor, but one of the terms of that deal was an agreement with an unidentified large automaker for an investment. Without such an agreement, Fisker needs to renegotiate terms of its financing or seek other options, including bankruptcy, the company said.

The company’s problems coincide with a general reset among automakers who are either reining in EV investments amid slowing sales growth or straining to find financing in a tougher market.

After termination of discussions with the automaker, Fisker said its intends to work out new terms with the investor. Fisker had already missed an interest payment of $8.4 million early in March on some 2026 convertible notes and said that bankruptcy was a possibility.

Written by: @Bloomberg

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