It’s another day and another setback for troubled electric vehicle maker Fisker (OTC:FSRN). The company has announced two voluntary recalls for nearly 18,000 vehicles owing to software glitches and regulatory non-compliance.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Fisker’s Vehicle Recalls
The recalls are for Fisker’s vehicles in North America and Europe. The first recall is for nearly 11,201 Fisker Oceans due to the current Motor Control Unit (MCU) and Vehicle Control Unit (VCU) software, which can cause the vehicles to enter a safe state protection mode, potentially resulting in a loss of motor power. The company plans to provide an over-the-air update, which is a method of remotely updating the software on the vehicles via a wireless connection, to fix the glitch.
The second recall is for nearly 7,145 Fisker Oceans in the U.S. and Canada, as these vehicles are currently non-compliant with certain Federal Motor Vehicle Safety Standards. The company plans to complete software updates for both recalls by June 30.
Fisker’s Series of Troubles
These recalls are the latest in Fisker’s series of troubles. The company has been scaling back its operations as it struggles for cash. Last month, it received a $3.5 million lifeline from an existing investor by offering senior secured debt. Earlier this year, Fisker’s discussions for a potential deal with a major automaker fell apart.
Is Fisker a Good Stock to Buy?
Subsequently, Fisker’s shares were delisted from the NYSE owing to low price levels in the stock. Fisker’s share price has plunged by nearly 99.74% over the last three years. While analyst coverage on Fisker is scant at present, the TipRanks Technical Analysis tool is flashing a Sell signal on the stock on a monthly time frame.
Read full Disclosure
