The stock price of Fisker (NYSE: FSR) plummeted by over 30% recently due to heightened concerns about bankruptcy. It hit an all-time low of $0.09 following the breakdown of talks with a major automaker.

The company has been under scrutiny as worries about bankruptcy risks persist among investors. Despite raising $100 million from investors this month, Fisker indicated that it may struggle to meet the closing conditions for these funds.

Investors had hoped for a substantial investment from a large automaker, rumored to be Nissan, although talks ultimately fell through. Fisker is now considering various options, such as restructuring both in and out of court, to address its financial challenges and debt reduction.

Speculation suggests that filing for bankruptcy might be the most viable route for Fisker given its limited equity and weakened business operations. The company's suspension of vehicle manufacturing for an extended period has also contributed to its financial woes.

Furthermore, with the anticipated legal action from investors who suffered losses as the stock price declined, Fisker could face additional troubles. Short-sellers, who profited from betting against the company, have capitalized on its struggles.

Looking ahead, while Fisker's prospects appear grim amid ongoing bankruptcy risks, the stock could potentially attract meme stock investors following a bankruptcy filing. However, in the long term, it is likely that the Fisker stock price will continue to face downward pressure and possibly approach zero.