Tesla rival Fisker is facing a possible delisting from the NYSE and a security investigation

The second time’s the charm – or that may be what Henrik Fisker thought when he founded the eponymous EV maker Fisker Inc. launched after a failed attempt a few years earlier (called Fisker Automotive).

Now the acclaimed Danish designer’s company is facing a number of high-stakes situations at once.

California-based Fisker, which listed through a SPAC in 2020, received a notice from the New York Stock Exchange for non-compliance as its shares closed below $1 on average for 30 trading days in a row, the company said in a statement last week .

The notice will not immediately suspend Fisker’s trading from the NYSE, but failure to comply could ultimately result in delisting.

Fisker said it has six months to return to compliance with the exchange’s rules and is considering several options, including a reverse stock split, to help do so.

“The company intends to remain listed on the NYSE and is considering all available options to regain compliance with the NYSE’s continued listing standards,” Fisker said in a statement.

Fisker shares have plummeted nearly 89% in the past year.

The Ocean SUV maker faced several headwinds in delivering its cars to customers.

Last year, Fisker made just over 10,000 cars, falling more than three-quarters below its original estimate and ultimately delivering less than half of the vehicles produced.

Adding to the pressure, it became the subject of a National Highway Traffic Safety Administration investigation last week after thousands of Fisker cars were driven away or moved without permission in 2023.

Competition, reach and more

The electric vehicle market is challenged by increased competition, shrinking cash reserves and higher costs.

Some of these factors have handicapped many startups in the sector, including the UK arm of UK company Arrival, which entered administration earlier this month (it was shortly before that delisted from the Nasdaq).

Fisker’s Ocean SUV has a tough road to map – whether that’s the initial software issues it faced, or more recently the review from an influential YouTuber who recently called it the “worst car” he ever tested.

Marques Brownlee, aka MKBHD, said in a video that driving the Fisker Ocean was the “strangest car review experience.”

There were some positives: he praised the car’s design and its “comfortable seats.”

Fisker has big ambitions to scale up its EV production to an expected 300 SUVs per day.

But the company has fallen far short of its targets, TechCrunch reported in January, citing internal documents.

The company also supplies SUVs in Europe with the help of its contract manufacturer Magna Steyr in Austria, but it has struggled to see its early estimates of global demand for electric vehicles materialize.

The company said it would scale back its operations in December to ensure liquidity remains intact by lowering its production target.

One of the problems in the US after Ocean’s launch last June was the difficulty of reaching buyers through the direct-to-consumer sales model.

Fisker decided to ditch the approach made famous by the likes of Tesla and Rivian and instead set up traditional dealerships in hopes of expanding its footprint.

A Fisker representative provided guidance Fortune on his press release when contacted for comment.

Bad karma

Henrik Fisker’s first foray into car making was through Fisker Automotive, a company that made plug-in hybrid cars and was popular among celebrities, including Justin Bieber.

He was a seasoned expert in this field, having worked at BMW and Aston Martin, among others.

The company filed for bankruptcy in 2013 after its flagship Karma failed in tests.

Fisker Automotive had managed to raise $1.4 billion from public and private investors since its founding in 2007, Reuters reported.

During that time, the company never turned a profit; instead, it lost thousands of dollars making each car.

With his second rodeo, Henrik’s big goal for the EV market was to make it easier for the masses to afford all-electric cars, as current options can price people out of the market, Henrik said. The edge in an interview last January.

In the third quarter earnings results published in November, Fisker Inc.’s revenue was . $71.8 million, while losses for the period amounted to $91 million.

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