(Reuters) -Electric vehicle startup Fisker said on Friday it had received a non-compliance notice from the New York Stock Exchange as its stock had closed below $1 on average for 30 consecutive trading days.
Failure to comply with the NYSE’s rules can lead to a delisting and companies typically use reverse stock splits to regain compliance with the minimum price requirement.
Fisker, which makes the Ocean electric SUV, said the notice would not lead to an immediate delisting from the stock exchange, adding it has six months to regain compliance.
The non-compliance notice is the latest in a long line of troubles for the Manhattan Beach, California-based company, which is struggling to deliver its EVs to customers.
Though the company made more than 10,000 vehicles in 2023 – less than a quarter of its initial forecast – it delivered only about 4,700. Fisker has been adding dealerships alongside its direct-to-customer distribution model to ramp up deliveries.
Separately, the U.S. National Highway Traffic Safety Administration (NHTSA) said on Friday it had opened a preliminary probe into claims of unintended vehicle movement in about 4,000 Ocean SUVs.
(Reporting by Zaheer Kachwala and Niket Nishant in Bengaluru, and Abhirup Roy in San Francisco; Editing by Tasim Zahid and Sayantani Ghosh)