Shares of electric vehicle (EV) maker Fisker (FSRN -12.70%) are 7.7% lower as of 12:25 p.m. ET Wednesday following this morning's announcement that the company wouldn't be reporting its third-quarter results today after all. The delay is reportedly related to the recent departure of Fisker's now-former chief accounting officer, John Finnucan IV.
Fisker stock was already vulnerable
Originally slated to be released this morning, electric vehicle manufacturer Fisker now says its Q3 report will be posted after the market closes on Monday, Nov. 13. The company explains that the timing of Finnucan's exit has delayed the preparation of its financial statements and official Securities and Exchange Commission (SEC) filings.
And, perhaps that's the extent of the embarrassing-but-survivable gaffe.
When your former chief accounting officer gives more than one full month's notice though -- and when your company's already facing operational and liquidity problems -- any prospective red flag is treated like it's a sign of trouble.
Leaving Fisker stock vulnerable to such a setback is a broader slowdown of the EV market itself. Industry giant Tesla as well as Fisker have lowered prices of their electric vehicles this year in an effort maintain demand, for example, yet the measure's not proven overwhelmingly helpful. Tesla's production and deliveries both fell from Q2's levels in Q3, with waning demand as much to blame for the slowdown as the company's reconfiguration of its production lines. General Motors and Ford Motor Company are also dialing back their aggressive electric vehicle ambitions, and their investment in them. Ford is even postponing $12 billion worth of spending plans to expand its EV production capacity.
Against this sort of backdrop, shares of a pre-profit company like Fisker are especially vulnerable to even the slightest hint of trouble.
Investors don't need any more drama
Again, the decision to reschedule the release of quarterly numbers isn't an ironclad sign of impending doom. Corporations have also survived the resignations of executives and officers. Things happen.
In this particular case though, Fisker's announcement that it's delaying the release of its third-quarter report because its chief accounting officer stepped down last month hints at chaos at the organization's headquarters. Investors don't need that additional worry. They've got enough of them already, not the least of which is that Fisker is running out of money.
Bottom line? Wednesday's dip isn't a buying opportunity. It looks more like a simple extension of a sell-off that's been underway since late 2021 and is still gathering steam.
