Last week, troubled electric vehicle startup Fisker Inc. disclosed that it had received a non-compliance notice from the New York Stock Exchange (NYSE) due to its stock consistently closing below $1 for 30 consecutive trading days.

Fisker, known for its Ocean electric SUV, clarified that the receipt of the non-compliance notice from the NYSE would not immediately lead to delisting. The company stated it has a six-month window to rectify the situation and regain compliance.

To meet the NYSE’s minimum price requirement and avoid delisting, companies often resort to reverse stock splits.

Despite Fisker’s production of over 10,000 vehicles in 2023 falling short of their initial forecast by less than a quarter, with only around 4,700 deliveries made, the company has been expanding its dealership network and direct-to-customer distribution model to enhance its delivery capabilities.

Moreover, Fisker is currently under preliminary investigation by the US National Highway Traffic Safety Administration (NHTSA) following reports of unintended movement in approximately 4,000 Ocean SUVs.