In the world of electric vehicle (EV) makers, Fisker (NYSE:FSR) has had a very rough go over the past couple years. During the special purpose acquisition (SPAC) era when Fisker went public, its share price rocketed higher, as investors looked for any avenue for growth in this space. However, since hitting a high of more than $30 per share in early 2021, shares of FSR stock have since sunk to $2.05 per share at the time of writing, a new all-time low.
There are a couple of company-specific factors driving this move today. First, the company announced that the New York Stock Exchange (NYSE) provided the company with a non-compliance notice last week. This notice calls for the company to file a Form 10-Q within six months, or risk delisting from the exchange. These sorts of notices are commonplace for companies that miss their filing deadlines, which Fisker has.
Perhaps more concerning is the fact that Fisker’s internal executive group appears to be turning over far too quickly. Just two weeks after Florus Beuting succeeded John Finnucan (who left the role after only three years), his resignation is the latest to be handed to the company. This sort of announcement has indicated to many investors that perhaps there’s something beneath the surface investors should be concerned about.
Let’s dive into what investors may want to make of this news, and where to go from here.
FSR Stock Sinks on Accounting-Related News
Two of the positions that investors probably pay most attention to, outside of the CEO and COO roles of course, is the chief financial officer and/or chief accounting officer. This position has moved from being viewed as a necessary bean counter to one that can really shape the strategic direction of a company. Accordingly, with such a clear picture of a business’ internal financials, the kind of turnover we’ve seen at Fisker is something that certainly sends the wrong signal to the market.
Investors are forced to consider that there’s something going on with Fisker and its inability to file financial statements. When one CAO resigns, and the guy who replaces him resigns after two weeks, there could certainly be fire, given the amount of smoke investors see.
We’ll have to see what ultimately comes from Fisker, and how the company deals with the executive exodus it’s seeing right now. For now, I think this is one EV stock that’s simply too risky to own right here, for these reasons and others.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
