Fisker trading suspended by NYSE

The New York Stock Exchange said on Monday it would immediately suspend trading in shares of electric vehicle startup Fisker and prepare to remove the company from the exchange.

The exchange said on Monday that Fisker shares were “no longer suitable for listing” due to “unusually low” price levels. A month ago, the New York Stock Exchange warned Fisker that its stock price had been below $1 for 30 days in a row, violating the exchange’s rules.

Fisker can review the NYSE’s decision, but the company said in a filing Monday afternoon that it expects its shares to be moved to over-the-counter markets such as OTC Pink. The company also said the delisting had triggered repayment terms on two outstanding loans it currently cannot afford, which could have a “material adverse impact” on the business.

The suspension capped a tumultuous day for Fisker, which saw its shares fall more than 28% before the suspension. Earlier on Monday, Fisker announced it had lost a potential deal with a major automaker, reportedly Nissan, a development that also jeopardized recently announced attempts to secure emergency funding.

The company did not explain why the automaker terminated negotiations, a key closing condition for a potential $150 million in convertible notes announced last week. Fisker said in the filing that it will require unnamed investors to waive closing conditions.

Fisker’s problems, including customer complaints, lawsuits and federal investigations, have been escalating for months. The troubled electric vehicle startup has struggled to sell its Ocean SUV in its early days, falling short of its own internal sales targets, TechCrunch reported in January. It abandoned its direct-sales model and turned to dealers to help drive sales. The company has also struggled with quality issues — issues that Fisker has sometimes struggled to resolve, according to internal documents.

In February, Fisker laid off 15% of its workforce, or about 200 people, and last week reported having just $121 million in the bank. The company has suspended production and warned investors it would not survive for another year without a fresh infusion of cash.

This article has been updated to include details from Fisker’s SEC filing Monday afternoon.