Fisker Stock: Bankrupt EV Maker Recalls 11,000 SUVs

  • Fisker’s (FSRNQ) Ocean SUV has received four recalls since June.
  • The latest recall involves a faulty water pump and affects 11,308 Oceans.
  • FSRNQ stock is down by 99% this year.
Fisker Stock - Fisker Stock: Bankrupt EV Maker Recalls 11,000 SUVs

Source: Kittyfly /

It just keeps getting worse for bankrupt Fisker (OTCMKTS:FSRNQ). Last month, the National Highway Traffic Safety Administration (NHTSA) announced three recalls for the Fisker Ocean SUV. These involved a loss of drive power, incorrectly displayed warning lights and faulty door handles. The recalls came after the vehicle’s botched debut, which was laden with consumer complaints involving both hardware and software.

Now, the Ocean has just received its fourth recall, which affects 11,308 Oceans, 7,545 of which are located in the U.S. The recall involves a faulty water pump that could lead to a loss of power.

“A communication failure with the cabin electric water pump can cause the high voltage battery management system (BMS) to enter limp mode, causing a loss of drive power,” said the NHTSA.

Fisker Stock: Ocean SUV Receives Fourth Recall

Fisker’s NHTSA stat sheet now stands at four recalls, four investigations and 232 complaints.

As for a fix, Fisker has agreed to replace the water pumps at no cost to vehicle owners.

For shareholders of Fisker stock, there really doesn’t appear to be any hope left as shares are down by 99% year-to-date. Fisker still has an inventory of Oceans, although these will likely be sold at extremely discounted prices.

Earlier this month, Fisker revealed through a court filing that it had proposed a deal to American Lease, an EV leasing firm. The deal involves the sale of up to 3,231 Oceans configured in the U.S. or Canada for up to $46.25 million. Brand-new vehicles would be sold for $16,500 a piece, while previously titled vehicles would go for $3,200. Damaged vehicles would be sold for $2,500.

When Fisker was still in business, it sold the Ocean for between $38,999 and $70,000. In March, the starting price was cut to $24,999.

American Lease has already agreed to the deal, which means that court approval is next. Shareholders should expect to receive an update soon.

Unfortunately, this deal won’t bring Fisker back from the dead. The EV company has enacted several rounds of layoffs this year while its cash stash has run dry.

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On the date of publication, Eddie Pan did not hold (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 Publishing Guidelines

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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