Being at the cutting edge of an industry revolution can come with massive rewards, and also massive risk. That's never been more clear than within the electric vehicle (EV) industry, as has proven a first-mover advantage can power a company's stock higher for years. At the other end of that spectrum is Fisker, which crumbled under the weight of massive cash burn and consistent production problems.
Fisker won't be the last EV company to close its doors; is Nikola (NASDAQ: NKLA) the next domino to fall?
By February 2024, Fisker investors knew they were in trouble. Fisker had just reported a fourth-quarter net loss of $463 million and slashed 15% of its workforce. A number of problems plagued Fisker vehicles, including delays with suppliers and even difficulty delivering vehicles to paying customers. In fact, while Fisker produced only 10,000 vehicles in 2023 -- less than a quarter of its initial forecast -- it couldn't even deliver half of those vehicles.
Source Fool.com