EV Startup Fisker Files for Bankruptcy

Fisker has struggled to stay afloat, seemingly from its inception. In March, the California-based startup halted the sale of shares. It was delisted from the New York Stock Exchange (NYSE) after the company alerted investors that it may not have enough money to stay afloat throughout 2024.

Then, last month, the company announced a round of layoffs that affected hundreds of employees, with CEO Henrik Fisker claiming that the layoffs were necessary to stay afloat.

Now, the plug has officially been pulled on the company, as Reuters announced that the EV startup has filed for bankruptcy protection.

The filing, which happened on Monday, June 17, features the company seeking to restructure its existing debt and sell off its assets.

“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently,” the CEO stated in a press release released on Tuesday, June 18. “After evaluating all options for our business, we determined that proceeding with a sale of our assets under Chapter 11 is the most viable path forward for the company.”

In the Chapter 11 filing, the parent company revealed estimated assets of $500 million to $1 billion and liabilities of $100 million to $500 million, with 200 to 999 creditors, according to the Washington Post.

Fisker’s struggles to stay afloat were compounded by its inability to secure a major investor back in March, supply chain issues, and persistent investigation into its practices by United States regulators. Additionally, the California-based company burned through most of its cash reserves by delivering its Ocean SUVs to the American and European markets.

According to the Reuters report about the bankruptcy filing, the Japanese automaker Nissan was due to invest in the company, but that investment fell through.

The EV startup also revealed that it made over 10,000 cars in total last year and delivered less than 5,000 to the market. This failure to deliver the majority of its manufactured cars prompted a regulatory probe from United States government officials, according to a separate report by Reuters.

The company now joins the ranks of other EV startup companies like Proterra, Lordstown, and Electric Last Mile Solutions in filing for bankruptcy.