Electric vehicle pioneer Fisker is reportedly exploring the possibility of bankruptcy and has sought the expertise of restructuring advisors, as mentioned in a Wall Street Journal article on Wednesday. Sources familiar with the situation have revealed that Fisker has engaged FTI Consulting for financial guidance and the law firm Davis Polk for legal advice on a potential bankruptcy filing.

Fisker opted not to provide comments on these developments.

In the aftermath of the report, Fisker's stock experienced a dramatic drop, declining over 40% in after-hours trading, as highlighted by CNN. Since the commencement of 2024, the company's shares have plummeted over 80%.

In recent updates, Fisker highlighted the risks to its ongoing operations, announced job reductions, and signaled a halt in further investments into forthcoming projects pending the establishment of a manufacturing partnership.

Notably, Nissan has been reported to be in late-stage discussions to invest in Fisker. Such a partnership could offer the Japanese car manufacturer entry into the electric pickup truck market, according to a report by Reuters earlier this month, which cited individuals close to the negotiations.