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Fischer (NYSE:FSR) Shares rose sharply Friday after the company said it was in talks with a major automaker for a “strategic partnership,” allaying concerns that a bankruptcy filing is imminent.
In an emailed statement seen by Bloomberg, the company said the fact that it is working with external advisors is not related to a pending insolvency, but rather to help manage the business and develop and execute strategies.
Fisker (FSR) has been in free fall since October, plagued by competition in the electric vehicle market, mechanical problems with its Ocean SUV and a lack of capital, sending shares down to pennies this week. Investors abandoned the stock two weeks ago when the company said it had doubts about whether it could continue operating, raising the likelihood of a bankruptcy filing.