EV brand Fisker files for bankruptcy

The global demand for electric vehicles are slowing down, and that’s very bad news if you’re an EV startup company.

That is pretty much the case for Fisker, Inc. The US-based EV startup has filed for bankruptcy protection as they have basically run out of money. They are now in the process of selling its assets and chose the Chapter 11 route which allows companies to try to resolve their funding problems through reorganization.

Fisker’s sole product is the Ocean, which is an electric SUV. The brand produced around 10,000 units of the EV, but Fisker reportedly delivered just 4,929 vehicles in 2023 despite spending a huge amount of money on operating and investing activities. This prompted the brand to halt production of the Ocean last March. Prior to the bankruptcy protection filing, Fisker already filed for reorganization in Austria.

Furthermore, Fisker already had previous rescue talks with major established automakers – one of them include Nissan. However, those talks fell apart without Fisker securing a deal and stay afloat.

Its operating unit, Fisker Group Inc., has estimated assets of USD 500 million to USD 1 billion, but it also has liabilities of USD 100 million to USD 500 million.

This marks the second company founded by Henrik Fisker to go bust. The original Fisker Automotive that made the Karma sedan filed for bankruptcy around 10 years ago, where its assets were sold to China’s Wanxiang Group.