Why was Fisker ($FSR) a bad trade?

I purchased Fisker stock after the company announced that it is looking at bankruptcy. It looked like Fisker had some upside that the market was ignoring —

• Around 4000 cars that could be sold at an average of 30k
• 326 Million cash with a market cap of around 300 Million.
• Their cars had decent reviews.

In hindsight, these are the red flags that I ignored

• Auto-makers aim to have no inventory. ~4000 cars unsold is a huge red flag.
• On March 18 Fisker suspended production for six weeks citing several justifications — car company halting production means the company gave up.
• 300 Million cash — that it had at the end of their earnings call — is not enough to run a car company. Infusion of 400M from Nissan might not have been enough either.
• Potential customers don’t want to buy cars from bankrupt companies even with good deals. You don’t want your brand new car to break down whose parts are no longer sold.
• Fisker had a few NHTSA complaints, every car maker does. Trading a bankruptcy facing company means you make sure the complaints are not major issues. These issues come into play while finding a potential investor. Investors do not want to pour money in a car platform that does not have solid foundation.
• Fisker had delisting notice from NASDAQ which was not even a priority issue for Fisker to sort out. Delisiting would be resolved if it could resolve other bigger issues — funding.
• There are just too many EV companies fighting for investment and attention amid an EV growth saturation.

Moral of the story: do not rush into bankruptcy facing companies and do due diligence.

All companies do not die alike.

• Cash and labor heavy industries like auto die a quick death.
• Tech companies like Twitter or Reddit will die slowly as long as they can afford to pay hosting bill and one person salary to perform bare minimum maintenance.