Why Fisker Stock Plunged Today

Investors were slamming the brakes on Fisker (NYSE: FSR) stock today. Shares of the electric vehicle (EV) start-up were tumbling after the company issued the dreaded "going concern" warning in a filing after hours yesterday. Essentially, that means the company is running out of cash and may not be able to stay in business.

Fisker also reported preliminary fourth-quarter earnings and said it was in advanced talks to take an investment from a major automaker, which was later reported to be .

As a result, the stock closed off 33.8% after trading down as much as 47.9% earlier in the session. The stock recouped some of its losses in late afternoon trading after Reuters reported that Nissan was the interested automaker.

Source Fool.com