The troubled EV start-up Fisker has filed for bankruptcy protection in the USA.
Fisker was launched in 2016, initially seen as a rival to Tesla.
Fisker merged with a finance house in 2020, carrying a valuation of approximately £2.28 billion.
Former Tesla design consultant Henrik Fisker and his wife, Geeta Gupta-Fisker, founded the firm.
To increase production of the Fisker Ocean SUVs, inevitably leading to cash burn.
Fisker raised concerns in February about its ability to stay in business.
Fisker failed to secure investment from a large car manufacturer (reportedly Nissan).
Additionally, the loss of potential £275m funding from an undisclosed investor due to lack of manufacturer investment had a significant impact.
Fisker is selling assets and undergoing a debt restructuring to salvage the company.
The Official Statement: Fisker referenced ‘Market and macroeconomic headwinds impacting efficient operations.’
Fisker filed for Chapter 11 Bankruptcy in Delaware. Creditors include Alphabet’s Google and Adobe.
Other EV companies that filed for bankruptcy in the past two years include Lordstown, Proterra, and Electric Last Mile Solutions.
The common issues are fundraising hurdles, weakening demand, and global supply chain issues.
Unavoidable Market Impact:
Shares of electric vehicle makers subsequently mainly traded lower, a clear indication of the sector’s concern and the ripple effect of Fisker’s financial woes.
Fisker’s business plan was like a student cramming for finals, promising but ultimately sleep-deprived and underprepared.
