06-18-2024, 7:51 PM

Electric vehicle manufacturer Fisker has filed for bankruptcy

Electric car Fisker Ocean - Video Screenshot

Fisker, a manufacturer of electric vehicles, became the second electric company to declare for bankruptcy in a year, as even market leaders find it difficult to draw in customers beyond the technology's early adopters.

In a Monday bankruptcy filing filed in Delaware, Fisker disclosed $500 million to $1 billion in assets and $100 million to $500 million in liabilities.

The business was already warning of disaster. It stated in February when it released its quarterly profits that it might not have enough cash on hand to last another year. Fisker then disclosed that the company was in talks to get additional capital from an existing investor.

“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 company said in a prepared statement late Monday. “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.”

Henrik Fisker, a noted designer, founded the 7-year-old company and serves as its chairman and CEO. He designed Fisker’s 2022 Ocean all-electric SUV and the luxury plug-in hybrid Karma, which debuted in 2011. Fisker also played a key role in developing the BMW Z8 sports car.

At its Lordstown, Ohio, facility, Fisker had intended to collaborate with Foxconn to produce the Fisker Pear, another electric vehicle. A formal contract manufacturing arrangement with Foxconn never materialized, despite an agreed-upon early letter of intent.

The New York Stock Exchange issued Fisker with a warning early this year after the company's stock fell below $1. The company's shares were not delisted right once, and Fisker stated at the time that it intended to stay listed on the NYSE and was exploring all of its alternatives to get back into compliance with the NYSE's ongoing listing requirements.

The bankruptcy case now excludes Fisker Inc. and other U.S. subsidiaries in addition to subsidiaries outside the U.S. Regarding debtor-in-possession financing and asset sales, Fisker claims to be in advanced discussions with financial stakeholders.

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