Fisker Files For Bankruptcy Again After Delivering Only 6,400 EVs

Fisker Inc., the electric vehicle (EV) startup, filed for Chapter 11 bankruptcy earlier this week, echoing the unfortunate fate of its predecessor, Fisker Automotive. This move comes nearly a year after delivering its first vehicle and almost four years after the company went public. The filing follows months of increased concerns over Fisker’s financial health.

According to the New York Times, Fisker consistently cut production plans for its flagship Ocean SUV due to escalating financial troubles. In Feb, the company expressed "substantial doubt" about its ability to continue operations. Production was halted in March, and by May, Fisker had defaulted on a loan repayment.

By mid-April, Fisker had delivered over 6,400 Ocean SUVs. The company outsourced production to focus on design and software, including a unique rotating dashboard screen similar to those in BYD vehicles. However, other models listed on its website, such as the Pear, Alaska, and Ronin, have yet to be produced.

Fisker is now looking to sell its assets, which are valued between US$500 million and US$1 billion. The company’s liabilities range from US$100 million to US$500 million, with major creditors including tech giants Adobe and Google.

In an official statement, a Fisker spokesperson cited various market and macroeconomic challenges that have hindered the company's operational efficiency. The spokesperson also noted that, despite strong demand for electric vehicles, the market has not met auto executives' expectations.

This has raised concerns about significant investments in new models and manufacturing facilities, particularly with increased competition from Chinese automakers.

Fisker was among several EV startups that raised billions of dollars by promising rapid growth and going public through mergers with special purpose acquisition companies (SPACs) in 2020 and 2021. This group includes companies like Lordstown Motors, Arrival, and Proterra, which have also filed for bankruptcy. Others, such as Canoo and Nikola, are struggling financially.

This bankruptcy marks the second time that Henrik Fisker, the founder, has seen one of his car companies fail. His previous venture, Fisker Automotive, filed for Chapter 11 bankruptcy in 2013 after producing only one model, the Fisker Karma.

Fisker's experience serves as a stark reminder of the volatility and unpredictability in the rapidly evolving EV market. As the industry faces these challenges, the company’s story highlights the risks associated with ambitious growth plans and the competitive pressures of the global automotive landscape.