EV startup Fisker receives non-compliance notice from NYSE

The logo of Fisker Automotive is pictured on a car at the 2022 Paris Auto Show in Paris, France, October 18, 2022. REUTERS/Stephane Mahe/File Photo

(Reuters) -Electric vehicle startup Fisker said on Friday it had received a non-compliance notice from the New York Stock Exchange as its stock had closed below $1 on average for 30 consecutive trading days.

Failure to comply with the NYSE’s rules can lead a company to get delisted from the world’s largest stock exchange.

Recipients of such notices typically get some time to regain compliance with the exchange’s rules before delisting proceedings are initiated.

The company said the notice does not lead to an immediate delisting from the stock exchange, adding it has six months to regain compliance.

Companies typically use reverse stock splits and share buybacks to regain compliance with the $1 minimum price requirement.

The notice by the NYSE is the latest in the troubles at Manhattan Beach, California-based company.

In December, the company said it would scale down production for the month to prioritize cash for working capital needs.

Separately, the company said it had signed four dealers to sell its vehicles as it adds dealerships alongside to complement its direct-to-customer distribution model.

While the EV startup made more than 10,000 vehicles in 2023, it delivered only about 4,700 units of the Ocean sport utility vehicles due to distribution constraints.

(Reporting by Zaheer Kachwala and Niket Nishant in Bengaluru; Editing by Tasim Zahid)