The New York Stock Exchange issued a non-compliance warning to electric vehicle startup Fisker on Friday, because its stock had closed below $1 on average for 30 straight trading days.
The manufacturer of the electric SUV Ocean, Fisker, stated that the notice would not result in an instant delisting from the stock exchange and that it would have a period of six months to return to compliance.
Companies usually use reverse stock splits to recover compliance with the minimum price requirement, as noncompliance with the NYSE’s guidelines can result in delisting.
The California-based company, has been facing difficulties in delivering its electric vehicles to clients.
This non-compliance warning is only the most recent in a string of setbacks.
Despite producing over 10,000 cars in 2023—less than 25% of what it had predicted—the company only delivered roughly 4,700 of those cars.
Fisker has been increasing deliveries by expanding its direct-to-customer distribution approach in addition to dealerships.
