Fisker files for bankruptcy

Fisker has filed for bankruptcy protection as the US EV manufacturer aims to salvage its operations by selling assets and restructuring debt after using its money to ramp up production of its Ocean SUVs.

So says Reuters, adding the hyper-competitive EV market has seen several companies, including Proterra, Lordstown and Electric Last Mile Solutions, file for bankruptcy in the past two years as they grappled with weakening demand, fundraising hurdles and operational challenges from global supply chain issues.

The Fisker EV company, founded by automotive designer Henrik Fisker, flagged doubts about its ability to remain in business in February and later failed to secure an investment from a big automaker, forcing it to rein in operations, says Reuters.

It says the collapse of Fisker’s talks with an automaker – which Reuters had reported to be Nissan – meant that it was denied US$350 million in funding from an unnamed investor that was contingent on the automaker’s investment and forced Fisker to explore options.

Reuters says Fisker explains that like some other companies in the EV industry, it has faced various market and macroeconomic headwinds that have impacted its ability to operate efficiently.

In the Chapter 11 bankruptcy filing in Delaware, its operating unit, Fisker Group Inc, estimated assets of US500 million to US$1 billion and liabilities of US$100 million to US$500 million, says Reuters.