EV maker Fisker (FSR) could be reporting for bankruptcy soon, according to the Wall Street Journal. Fisker's stock has plunged by over 50% Thursday morning. Yahoo Finance Live reports on the automaker's performance and recent woes.

Yahoo Finance Reporter Pras Subramanian joins the Live show to break down the latest development for Fisker and what it could mean for the company moving forward

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Luke Carberry Mogan.

Video Transcript

JARED BLIKRE: Fisker shares, they are plunging today. The electric vehicle startup is hiring restructuring advisors. They're preparing for a possible bankruptcy filing. And that's according to a "Wall Street Journal" report. Just last month, the carmaker warned about its ability to stay in business.

And I'm looking at a chart here on the Wi-Fi Interactive all the way back to its SPAC IPO before, I think, 2019, late 2018. Let me just show you the three-year here. You can see down 99%. This is a penny stock trading at $0.16. And then a couple of quick notes here. This is a company that's very early in this stage of development here.

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Their production target last year was 13,000 units. They manufactured a little over 10,000. They delivered 4,900. So this is a company that still has to figure out its business model, already considering bankruptcy, the second for the Fisker name in about 10 years. So you've got to wonder what the future is for this name in this very competitive field.

SEANA SMITH: Future does not look bright, at least right now. When you've got a stock trading at $0.16 a share, you're looking at a loss of about 50%. That's a record-setting drop here for Fisker stock. It's not necessarily a huge surprise like Jared you were saying. They warned just a couple of weeks ago just about the fact that the company was running out of cash. They also said that they could be in talks or were in talks about some sort of joint venture playbook here for the development of one or more EV platforms.

So that, of course, could be a move here, at least in the short term for Fisker. But when you take a look at the financials and what the company has reported in the most recent quarters, late last month, they reported fourth quarter sales of 200 million, which was well below what the Street was looking for. They lost 463.6 million in the quarter compared to narrower loss than they were expecting here. So it's just--

JARED BLIKRE: It was an EV company that came to market via SPAC over the pandemic.