Shares of Fisker (FSRN -12.70%) have fallen steadily so far this year, and this morning was no different. The electric vehicle (EV) stock was down 11% at 10 a.m. ET on Wednesday morning and had hit an all-time low of 0.8516 a share.

Fisker has struggled to make a mark in the EV industry so far. But just when investors thought the EV maker was making an effort to turn things around, their hopes were dashed. This morning, an analyst downgraded Fisker stock's price target by a jaw-dropping 90%.

Ocean SUV probe and a massive downgrade hits Fisker stock

Fisker stock slumped by double digits yesterday after reports surfaced of a probe into its Ocean SUV for poor braking performance. In an update, the National Highway Traffic Safety Administration's (NHTSA) Office of Defects Investigation announced that it has started a "preliminary evaluation" after receiving multiple complaints about Fisker's Ocean SUV losing partial braking performance on bumpy or low-traction surfaces without alerting the driver. One complainant even alleged a crash and an injury.

While it's nothing new for automotive and EV start-ups to run into hurdles like these as they develop new products, Fisker is already bogged down by production and delivery delays and a cash crunch.

This morning, analysts from TD Cowen slashed their price target on Fisker stock to only $1 from $11, according to The Fly. TD Cowen believes Fisker was once a promising new vehicle maker but that luster has come off now, thanks to a recent shift in its distribution strategy, missed timelines, and persistent delivery issues at a time when the overall global EV market is softening. The NHTSA probe has further fueled the analysts' pessimism about Fisker stock.

How low can Fisker stock go?

TD Cowen is, of course, late to the game, as Fisker stock has already lost 88% in one year alone and plunged below $1. The question now is not how low Fisker stock can go, but what will it need to make a comeback.

Fisker started developing its Ocean SUV in October 2020 and delivered its first cars in the U.S. in June 2023. Fisker's SUVs piqued the interest of investors in EVs, especially after its Ocean Extreme trim bagged a range rating of 360 miles, the longest for a new electric SUV under $200,000.

Fisker, however, has struggled to scale up production and deliveries so far, with CEO Henrik Fisker even acknowledging how the company has fallen behind at Fisker's last earnings conference call. In a bid to turn things around, Fisker recently changed its distribution strategy and credited it for the 300% sequential jump in its deliveries in the fourth quarter. The company is developing more dealer programs to boost sales.

Success with its distribution strategy and a steady rise in deliveries could be a game changer for Fisker and an inflection point for its stock. However, if the NHTSA probe leads to a recall, adds to Fisker's costs in any way, or hits demand for its SUVs, Fisker could struggle to even survive.