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Fisker Stock Alert: Fisker Recalls 18,000 Ocean EVs

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After a highly volatile month, Fisker (OTCMKTS:FSRN) is facing new problems. The electric vehicle (EV) startup just announced a recall of more than 18,000 Fisker Ocean models due to software problems.

Fisker stock has proven volatile today on news of the EV maker voluntarily recalling these EVs. What’s more, the recalls raise questions regarding the already unstable company’s future, as well as its ability to continue operations as the list of concerns piles higher.

What’s Happening With Fisker Stock?

It has been a difficult week for Fisker stock so far. As of this writing, shares are down 0.85% for the day. Despite rising last month on momentum spurred by the Roaring Kitty rally, FSRN has come down significantly since then and looks poised to keep erasing its gains.

Now, the vehicle recalls stand to cast further doubt on the company’s prospects. Granted, the recalls won’t require much from Fisker drivers, as the problems can be addressed via over-the-air (OTA) solutions. According to AutoBlog, the cars aren’t being recalled for anything that could lead to crashes or death, either. The outlet reports:

“In the case of the Ocean, the recall notes that the font size for the brake, park and ABS warning indicators were too small, the brake warning lights were in amber and not red, and some of the tire pressure warning light operation weren’t correct. These do sound nitpicky, and unsurprisingly, no injuries or damages have occurred due to this issue, but the regulations are in place to ensure that warnings are universally understandable, and that they’re in colors and sizes that are easy to read and understand.”

For a more stable company, this recall likely wouldn’t matter much. For example, Tesla (NASDAQ:TSLA) has issued multiple recalls over the past few years, none of which have really impacted shares. But Fisker is a long way from being Tesla — or even from being one of its much smaller EV peers. Shares have fallen more than 96% over the past six months and currently trade at about 4 cents per share. That follows multiple surges spurred by dealership partner news.

With a clear lack of stability, it’s unsurprising that Fisker stock is volatile on today’s news. The company has reported many negative catalysts lately, including defaulting on a $3.5 million loan and implementing yet another round of layoffs. Today’s recall likely won’t matter too much in the long run, but that’s only because Fisker has many other strikes against it.

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Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.

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