Fisker Inc., the American electric vehicle (EV) startup, has filed for Chapter 11 bankruptcy protection, echoing the fate of its predecessor, Fisker Automotive, which filed for bankruptcy in 2013. The company, once valued at $2.9 billion after going public in 2020, faced insurmountable difficulties, including software glitches, hardware issues, and a global supply chain crisis that crippled its ability to deliver the much-anticipated Ocean SUV. With liabilities ranging from $100 million to $500 million against assets of $500 million to $1 billion, Fisker Inc.’s financial turmoil has resulted in a staggering net loss of $762 million in the previous year. The company’s stock value plummeted by 97.6% this year, reflecting the market’s response to its operational challenges and halting production of the Ocean SUV as early as mid-March 2024 due to funding issues. The broader EV market has seen a slowdown, with sales growing only 3.3% in the first quarter of this year compared to a 47% growth rate the previous year. Fisker’s bankruptcy is part of a troubling trend among EV startups, including Lordstown Motors Corp., which filed for bankruptcy last year. Amid these market headwinds, the company is in advanced discussions with investors regarding the sale of its assets. The bankruptcy filing has cast doubt on the company’s future plans, including a proposed pickup truck and a compact car, leaving the fate of these projects uncertain.
Key points
- Fisker Inc.
- The company struggled with production issues and low consumer demand for its Ocean SUV, leading to a net loss of $762 million in 2023.
- Amidst EV market challenges, Fisker’s stock value has dropped significantly, and production of the Ocean SUV was halted in mid-March 2024.
has filed for Chapter 11 bankruptcy protection, with assets and liabilities each estimated between $500 million and $1 billion.
