Fisker woes thicken as NHTSA launches a preliminary probe

Woes continue for Fisker Inc as the NHTSA launched a preliminary probe into the struggling electric vehicles company.

Why is Fisker under investigation?

The regulator has received multiple complaints against the 2023 Ocean SUV in recent weeks.

Users have alleged that a manufacturing defect prevents its doors from opening (sometimes). A few of them even went on to say that the emergency override does not fix the problem either.

Aim of the investigation is to evaluate not just the severity of the issue but also its potential impact on safety, as per the National Highway Traffic Safety Administration.

Fisker is yet to comment on the news this morning. Its stock failed to comply with the listing requirements and, therefore, was removed from the NYSE in March.

Fisker is scrambling for cash

On Wednesday, the NHTSA also said it was looking into complaints related to brakes on the 2023 Ocean SUV as well as a prior incident of unintended vehicle movement.

The EV company recently lowered the price of that sports utility vehicle to improve sales and raise funds to not breach its debt obligations.

Last month, it was even reported considering filing for bankruptcy after talks over a potential investment with an unnamed large automaker failed to bear fruits.  

The California-based company also halted production for two weeks on March 18^th as it looked for cash to fund operations. Our market analyst Crispus Nyaga has been bearish on Fisker for the longest time.