08:08 AM EDT, 03/15/2024 (MT Newswires) -- (Updates with Fisker's response in the second and third paragraphs 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.

In a statement issued Thursday, Fisker dismissed speculation about a bankruptcy filing and said it was concentrating on finding investors.

"Fisker often works with outside advisors to help manage its business and assist in developing and executing strategies," the company said in a statement emailed to MT Newswires. "Fisker is focused on raising additional capital and engaging in a strategic partnership with a large automaker."

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.

The company's shares were up nearly 35% in recent Friday 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.)

Price: 0.21, Change: +0.05, Percent Change: +34.93