Many electric vehicle (EV) stocks have been having a bad week. But start-up EV maker Fisker (NYSE: FSR) was one of the biggest losers. Fisker shares have dropped to an all-time low of about $0.80 per share and are down by about 23% just this week, according to data provided by S&P Global Market Intelligence.

The company's recent struggles have led to a sales strategy shift, and a new safety investigation related to braking issues with its initial deliveries is now taking a toll. One analyst even lowered Fisker's price target by over 90% this week.

A downward spiral

Fisker is doing all it can to stem the negative momentum in its stock. It has struggled to ramp up deliveries and sales of its first fully electric Ocean SUV models. As of last week, Fisker had delivered more than 5,000 of the European-made EV in the U.S., Canada, and Europe. The vehicle has an impressive EPA battery range of 360 miles, which it notes is the longest of any electric SUV in its class. The company produced more than 10,100 of those vehicles in 2023.

But at the start of January, the company announced a big strategy shift to jump-start sales and trim unexpectedly high delivery costs. It said it would replace its direct-to-consumer sales approach and instead use dealerships in North America. That's because Fisker has had logistical difficulties in getting the Ocean to customers in North America due to vehicle production being in Europe.

Downgraded to $1

In addition to those struggles, the National Highway Traffic Safety Administration (NHTSA) began an investigation into braking system complaints this week. While it is only an investigation of 31 complaints thus far, investors likely fear that the investigation could lead to a recall.

That has all led to a major analyst downgrade this week. On Wednesday, TD Cowen analyst Jeffrey Osborne dropped his firm's price target all the way from $11 to $1 per share. Osborne now has a hold rating on the stock, since shares have already fallen below that $1 target.

It will be key for Fisker's sales strategy shift to pay off. If the company reports a sharp acceleration in sales, and maybe more importantly deliveries, its shares could recover quickly. If it doesn't, they may not recover at all.

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