(Reuters) -U.S. electric vehicle (EV) maker Fisker filed for bankruptcy protection late on Monday, looking to sell its assets and restructure its debt, after succumbing to rapid cash burn to deliver its “Ocean” SUVs in the United States and Europe.
EV makers such as Proterra, Lordstown and Electric Last Mile Solutions have also gone bankrupt in the past two years due to depleting cash reserves, fundraising hurdles and challenges in ramping up production due to global supply chain issues. Fisker’s cars were also under investigation by U.S. regulators.
The company, founded by automotive designer Henrik Fisker, had flagged doubts about its ability to remain in business in February and a month later, its attempts to secure an investment from a big automaker failed, forcing it to rein in operations.
“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 said in a statement early on Tuesday.
The company’s operating unit, Fisker Group Inc, filed for Chapter 11 bankruptcy in Delaware, listing estimated assets of $500 million to $1 billion and liabilities of $100 million to $500 million. It has about 200-999 creditors, per the court filing.
Fisker made over 10,000 vehicles in 2023, less than a quarter of its forecast, but delivered only about 4,700. Its cars are under regulatory investigation for certain incidents, including a probe started by the U.S. auto safety regulator last month.
Fisker, an electric vehicle (EV) startup, has filed for bankruptcy, announcing its Fisker bankruptcy filing plans to liquidate assets amidst financial challenges.
This Fisker bankruptcy filing represents a major setback, underscoring the volatile nature of the global EV manufacturing landscape.
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