Fisker, U.S. Electric Vehicle Maker, Files for Bankruptcy Protection

19 Jun, 2024

Fisker, U.S. Electric Vehicle Maker, Files for Bankruptcy Protection

Fisker, a U.S. electric vehicle maker, has filed for bankruptcy protection following unsuccessful deal negotiations with a major automaker. The company has been struggling with a rapid cash burn, which significantly impacted its ability to deliver its 'Ocean' SUVs in both the U.S. and Europe. Fisker Group Inc, a subsidiary of Fisker, sought Chapter 11 bankruptcy protection. The filing reveals that the company has estimated assets between $500 million to $1 billion and liabilities ranging from $100 million to $500 million.

This filing came late on Monday, marking a significant setback for the startup. The collapse of the deal talks with the major automaker left Fisker vulnerable to financial instability. The company's ambitious plans to bring its 'Ocean' SUVs to market have been hindered by these financial challenges, highlighting the difficulties faced by new entrants in the competitive electric vehicle industry. The bankruptcy protection will provide Fisker with some breathing room to reorganize its debts and explore possible recovery strategies. However, the road ahead remains uncertain for the electric vehicle maker as it navigates through this financial turmoil.