The industry is bleak, sales are tough! The American electric vehicle startup Fisker is considering filing for bankruptcy, plummeting 40% after hours.

In the fiercely competitive American electric vehicle market, another carmaker is on the brink of collapse.

According to media reports citing informed sources, the struggling electric car manufacturer Fisker has hired restructuring advisors to assist in a potential bankruptcy filing. Following this news, the company's stock price plummeted by about 47% after hours.

Two weeks ago, Fisker had warned of the risk of running out of funds, and rumors were circulating in the market about negotiations with a large automaker for investment or joint development of electric vehicle platforms. Currently, Fisker has engaged financial firms FTI Consulting and law firm Davis Polk to prepare for a potential bankruptcy filing.

Fisker, which went public in 2020, was once dubbed as the "Apple of the automotive industry" due to its strategy of outsourcing actual production and focusing solely on design and consumer interface elements. However, the latest quarterly report revealed that Fisker's revenue in the fourth quarter of last year was only $200 million, far below analysts' expectations of $3.277 billion. The company incurred a loss of $463.6 million in the quarter, with a loss per share of $1.23, compared to $0.34 per share in the same period last year.

Over the past 12 months, Fisker's stock price has plummeted by 95%, sharply contrasting with the S&P 500 index's approximately 34% increase during the same period. The closing price on the first day of trading was $10.14, but as of Wednesday's close, it had fallen by 97%.

It is worth mentioning that Fisker's founder is Danish designer Henrik Fisker, who previously founded a company called Fisker Automotive. However, Fisker resigned due to board disputes, retaining some brand rights, and later founded Fisker Inc. Fisker Automotive went bankrupt in 2013.

The American car industry is not easy for both small and big players.

An earlier article by Wall Street News mentioned that analysts have lost confidence in Tesla, believing that it is not worth the high valuation and has become a "growth stock without growth."

Analyst Colin Langan from U.S. Bank stated that Tesla's sales volume will remain flat this year. By 2025, the situation will worsen, with sales declining. He lowered Tesla's target price from $200 to $120, implying a further decline of around 30%.

In early January, Musk warned that the company's sales growth this year would significantly slow down. Since then, investors have become increasingly concerned about Tesla's growth prospects.

In a memo to clients, Langan described Tesla as a "growth stock without growth." He emphasized that sales in the second half of 2023 only increased by 3% compared to the first half, while prices dropped by 5%.