09:23 AM EDT, 03/14/2024 (MT Newswires) -- (Updates with Fisker's response in the fourth paragraph and the latest stock movement in the last paragraph.)

Fisker (FSR) has hired advisers to help prepare for a possible bankruptcy filing, The Wall Street Journal reported late Wednesday, citing people familiar with the matter.

The company has hired financial adviser FTI Consulting and the law firm Davis Polk to work on a potential filing, the Journal reported.

The electric vehicle startup said in its Q4 and 2023 earnings report that it has struggled with sales. Its chief executive Henrik Fisker described last year as "challenging." The company reported a 2023 net loss of $762 million, or $2.22 per share.

A Fisker spokesperson reached by MT Newswires declined to comment on the report.

The company's shares were down nearly 45% in recent Thursday premarket activity.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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