A major automotive company investing? The American electric car newcomer Fisker responds to bankruptcy rumors, surging 42% after hours.

The electric vehicle industry has witnessed a dramatic scene, with electric car manufacturer Fisker plummeting by 52% and then skyrocketing by 42.74%.

Earlier on Thursday, the Wall Street Journal reported that Fisker had hired restructuring advisors to assist in a potential bankruptcy filing. This rumor caused Fisker's stock to plummet by 52% to $0.155 per share overnight on Thursday.

After the market closed, Fisker responded to the bankruptcy rumors: "The company typically does not comment on 'market rumors and speculation.' Currently, the company is working with external advisors to address funding issues and is seeking to raise additional capital. At the same time, the company is in strategic negotiations with a large automaker."

With this statement, Fisker's stock price made a sharp turnaround, surging by 42.74% to $0.22 per share in after-hours trading.

Last June, Fisker finally began delivering its first electric vehicle, the Ocean SUV, in the United States. This marked a significant milestone for the company, indicating that its products have entered the market. Fisker's stock price rose by 43% in overnight trading to $0.22 per share.

Against the backdrop of a slowdown in global electric vehicle growth, competition in the automotive industry is intensifying, with major automakers striving to gain market share. This will significantly impact the cash flow and financial condition of startup companies.

Therefore, some analysts point out that there are signs that Fisker's financial situation is not optimistic. Last month, Fisker issued a "going concern" warning, indicating that the company may run out of cash this year. At the end of February, Fisker postponed the release of its full 2023 annual report, citing a lack of sufficient accounting staff.

Not only Fisker, but many electric vehicle startups are struggling on the brink of survival.

For example, Elon Musk recently commented that Rivian Automotive (RIVN) may go bankrupt within six quarters. Although Rivian's production and delivery volumes are much stronger than Fisker's, its 2024 production guidance is disappointing, and the company has suspended plans to build a factory in Georgia.

Furthermore, luxury electric car manufacturer Lucid Motors (LCID) recently significantly lowered its 2024 production expectations, well below market expectations, citing weak electric vehicle demand and intense price competition.

Even industry leader Tesla is not immune, being forced to adopt price reduction strategies, leading to a continuous decline in its profits. Tesla also expects a significant drop in first-quarter deliveries compared to the fourth quarter.

As one of the "Big Seven" US stocks, Tesla's recent stock performance has been disappointing. Over the past three years, Tesla's annualized return has been an astonishing 15.2% lower than the S&P 500 index, and this year it has fallen by over 34% to date. Some analysis suggests that Tesla's performance is so poor that it may soon be kicked out of the "Big Seven Sisters" group.