Fisker Inc ( FSR ) shares are tumbling Thursday following reports suggesting the EV maker is exploring potential bankruptcy.

What To Know: According to a Wall Street Journal report, Fisker ( FSR ) has brought on restructuring advisers to help with a possible bankruptcy filing. People familiar with the matter reportedly said the company hired financial adviser FTI Consulting and law firm Davis Polk to work on a potential filing.

The news comes just weeks after Fisker ( FSR ) reported preliminary fourth-quarter results and warned that it expected to conclude there was substantial doubt about its ability to continue as a going concern when its annual financial statements for 2023 were filed with the SEC.

Fisker ( FSR ) noted at the time that it was in discussions with an existing noteholder about potentially making an additional investment in the company. Fisker had $272.9 million in sales last year. The company reported having $395.9 million in cash, equivalents and restricted cash as of Dec. 31, but it’s sitting on more than $1 billion in debt.

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FSR Price Action: Fisker ( FSR ) shares were down 40.9% at 19 cents at the time of publication, according to Benzinga Pro.