- Fisker filed for bankruptcy to sell assets and restructure debt after financial struggles producing “Ocean” SUVs.
- Facing cash shortages, supply chain problems, and failed investments, Fisker joins other bankrupt EV makers recently.
- Fisker paused production, cut workforce by 15%, and is under regulatory investigation after lower-than-expected 2023 deliveries.
US EV start-up, Fisker, files for bankruptcy after an unsuccessful fundraising effort and Ocean SUV production challenges
US-based Fisker has filed for bankruptcy protection, aiming to sell its assets and restructure its debt. This decision follows significant financial strain caused by the production and delivery of its “Ocean” SUVs. The strain was caused by depleting cash reserves, fundraising challenges, and production hurdles due to global supply chain problems. Fisker’s vehicles are currently under investigation by U.S. regulators.
Founded by automotive designer Henrik Fisker, the company expressed doubts about its future as early as February. By March, efforts to secure investment from a major automaker, reportedly Nissan, had failed. This forced Fisker to scale back its operations.
Henrik Fisker commented:
“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently.”
Fisker is in advanced discussions with financial stakeholders to secure debtor-in-possession financing. The company’s operating unit, Fisker Group Inc., filed for Chapter 11 bankruptcy in Delaware. It listed estimated assets of $500 million to $1 billion and liabilities of $100 million to $500 million. The court filing also identifies between 200 and 999 creditors.
Following the unsuccessful attempt to secure fund, Fisker explored various restructuring and capital market transactions. The company paused manufacturing and future project investments, reducing its workforce by approximately 15%. In 2023, Fisker produced over 10,000 vehicles but delivered only around 4,700.
In February 2024, the company highlighted its operational concerns after reporting a $463.6 million loss in the previous fourth quarter. By March, Fisker had paused production of the Ocean SUV and halted development of the smaller Pear hatchback while seeking a rescue deal. We wish Fisker the luck in a difficult time, and hope to see its models coming back off the production line very soon.
