New York: Electric vehicle (EV) startup Fisker says it received a non-compliance notice from the New York Stock Exchange (NYSE) as its stock had closed below US$1 on average for 30 consecutive trading days.
Failure to comply with the NYSE’s rules can lead to a delisting and companies typically use reverse stock splits to regain compliance with the minimum price requirement.
Fisker, which makes the Ocean electric SUV, said last Friday the notice would not lead to an immediate delisting from the stock exchange, adding it has six months to regain compliance.
The non-compliance notice is the latest in a long line of troubles for the Manhattan Beach, California-based company, which is struggling to deliver its EVs to customers.
Though the company made more than 10,000 vehicles in 2023 – less than a quarter of its initial forecast – it delivered only about 4,700.
Fisker has been adding dealerships alongside its direct-to-customer distribution model to ramp up deliveries.
Separately, the US National Highway Traffic Safety Administration said last Friday it had opened a preliminary probe into claims of unintended vehicle movement in about 4,000 Ocean SUVs. — Reuters