As the EV industry grapples with the realities of s failing market, another giant in the Electric Vehicle landscape, Fisker Inc., has declared bankruptcy amidst a dire cash crunch.
According to a Reuters report, the company's ambitious "Ocean" SUV delivery efforts in the U.S. and Europe led to its financial downfall.
Despite manufacturing over 10,000 vehicles in 2023, Fisker only managed to deliver around 4,700 units. Henrik Fisker's brainchild signaled distress earlier this year, with failed investment negotiations from a major automaker—identified by Reuters as Nissan—precipitating a strategic pullback.
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However, Fisker's Tuesday statement revealed market pressures and economic challenges as culprits for its operational inefficiencies. The firm is now pursuing asset sales under Chapter 11 and seeking debtor-in-possession financing.
With assets and liabilities estimated between $500 million to $1 billion, Fisker Group Inc's bankruptcy filing in Delaware lists 200-999 creditors.
Going forward, The company has paused production and future investments, pending an automotive partnership, alongside a workforce reduction of 15%.
Notably, the EV industry has been marred by bankruptcies, with companies like Proterra and Lordstown succumbing to financial strains and supply chain woes.
Fisker's regulatory entanglements have further complicated its stability as the current regulatory probes into its vehicles add to the company's uncertain future.
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