Company missed an interest payment on March 15 and lost potential deal with Nissan
Fisker failed to close a $150 million financing round
Struggling financially, in talks with large automakers for strategic options including restructurings and capital markets transactions
Fisker, an electric vehicle startup that competes with Tesla's Model Y SUV and growing crowd of mid-size electric SUVs such as the Ford Mustang Mach-E., has been unable to meet the closing condition related to its attempt to raise up $150 million by selling convertible notes after missing an interest payment on March 15, despite having enough liquidity as it wanted to use the 30-day grace period to talk with investors about its capital structure. The company lost a potential deal with Nissan, which was a critical closing condition for emergency funding. Fisker has been struggling financially and is in talks with large automakers for strategic options including in- or out-of-court restructurings and capital markets transactions.
The stock is no longer suitable for listing because of abnormally low price levels
Fisker was warned a month ago about its stock price falling below $1, putting it out of compliance with the exchange's rules
Two outstanding loans have triggered repayment clauses that could negatively affect Fisker's business
Accuracy
Fisker trading suspended by NYSE
Production is paused as Fisker seeks a fresh infusion of cash
Deception
(30%)
The article is deceptive in several ways. Firstly, the author claims that Fisker's stock price has been trading below $1 for 30 days which puts it out of compliance with NYSE rules. However, this information is incorrect as per the SEC filing by Fisker on Monday afternoon.
The article states that 'Fisker can review the NYSE’s determination,' but this is not true as per the SEC filing which shows that Fisker has been delisted from the NYSE.
The article states that 'Fisker’s stock is no longer suitable for listing because of abnormally low price levels.' This statement is false as per the SEC filing which shows that Fisker's stock was trading above $1.50 a share on March 23rd, and only fell below $1 after trading was halted.
Fallacies
(75%)
The article contains several fallacies. The author uses an appeal to authority by stating that the New York Stock Exchange (NYSE) has suspended trading shares of EV startup Fisker and is moving to take the company off its stock exchange. However, there are no quotes from any NYSE officials or documents provided in support of this claim.
The author uses an appeal to authority by stating that the New York Stock Exchange (NYSE) has suspended trading shares of EV startup Fisker and is moving to take the company off its stock exchange. However, there are no quotes from any NYSE officials or documents provided in support of this claim.
The author uses a false dilemma by presenting only two options for Fisker: being listed on the NYSE or an over-the-counter market such as OTC Pink. This ignores other potential markets that Fisker could explore.
Bias
(80%)
The article contains multiple examples of bias. The author uses language that dehumanizes Fisker and its employees by referring to them as 'imperiled' and 'struggling'. This is an example of religious bias as it implies a moral judgment on the company's struggles. Additionally, the author quotes sources who use inflammatory language such as calling Fisker's stock price
Fisker has been unable to meet the closing condition related to its attempt to raise up $150 million by selling convertible notes after missing an interest payment on March 15, despite having enough liquidity as it wanted to use the 30-day grace period to talk with investors about its capital structure
Fisker lost a potential deal with Nissan, which was a critical closing condition for emergency funding
Accuracy
No Contradictions at Time
Of
Publication
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(80%)
The article contains several fallacies. The author uses an appeal to authority by stating that the New York Stock Exchange plans to delist Fisker's shares due to abnormally low price levels without providing any evidence or citation for this claim. Additionally, the author quotes a hedge fund chairman who predicts that Fisker is likely to file for bankruptcy protection, which could be seen as an inflammatory statement. The article also contains several examples of dichotomous depictions by stating that Fisker's shares were trading at $0.09 before the halt and closed at $0.13 on Friday, implying a stark contrast between the past and present financial situation of the company.
The New York Stock Exchange plans to delist Fisker's shares due to abnormally low price levels.
Bias
(85%)
The article contains multiple examples of bias. The author uses language that dehumanizes the automaker by referring to them as a 'big' automaker and implies they are responsible for Fisker's failure. Additionally, the use of phrases such as 'abnormally low price levels', which could be interpreted as implying that Fisker is somehow undeserving of its current stock value, also shows bias.
The author uses language that dehumanizes the automaker by referring to them as a 'big' automaker and implies they are responsible for Fisker's failure.
The use of phrases such as 'abnormally low price levels', which could be interpreted as implying that Fisker is somehow undeserving of its current stock value, also shows bias.
, Fisker announced that its talks with a “large automaker” for a potential investment have fallen through. Trading has been halted on Fisker stock (FSR), and NYSE is moving to delist the stock.
Accuracy
, Fisker announced that its talks with a “large automaker” for a potential investment have fallen through.
Fisker trading suspended by NYSE
The stock is no longer suitable for listing because of abnormally low price levels
Deception
(50%)
The article is deceptive in several ways. Firstly, the author claims that Fisker's talks with a large automaker for a potential investment have fallen through when no such announcement has been made by either party. This statement is misleading and creates false expectations for readers who may be interested in investing or partnering with Fisker. Secondly, the article mentions Nissan as being the main target of rumors regarding a partnership with Fisker, but it fails to disclose any concrete evidence that such talks were actually taking place. This omission is deceptive and creates false impressions about Nissan's involvement in Fisker's affairs. Thirdly, the article mentions that trading has been halted on FSR stock and NYSE is moving to delist it, but fails to provide any context or explanation for these actions. This omission is deceptive and creates false impressions about the reasons behind these decisions.
The author claims that Fisker's talks with a large automaker have fallen through when no such announcement has been made by either party.
Fallacies
(70%)
None Found At Time Of
Publication
Bias
(80%)
The article contains a statement that Fisker's talks with a large automaker for potential investment have fallen through. This is an example of bias because it implies that the outcome was predetermined and not based on objective evidence.
]Fisker announced that its talks with a “large automaker” for a potential investment have fallen through.
