HomeIndustriesStruggling EV Maker Fisker Files for Bankruptcy

Struggling EV Maker Fisker Files for Bankruptcy

Less than a week after issuing a huge recall of its electric cars, EV maker Fisker has filed for bankruptcy.

Fisker faced a number of problems with its SUV Ocean, the only car the company produced. It lacked various basic features upon release while facing a number of software problems, resulting in a recall of more than 11,000 cars in the United States and Canada. The company previously stopped its production while also failing to secure a partnership with a major automaker that would potentially help them navigate the challenging period. 

Fisker previously blamed the issues Ocean faced on a software supplier and said it intends to resolve the issue with upcoming updates. But now, it is unclear whether those updates will ever come for the customers. 

 “Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently,” Fisker said in a statement announcing Chapter 11 protection filing.

According to its most recent financial filing, Fisker has a total of $1.3 billion in debt. The company now plans to embark on a reorganization that would help them solve these financial problems. This will likely include selling off its assets.

Fisker is the latest EV maker to fail to establish itself in the competitive market. Previously, EV startups Proterra, Lordstown, and Electric Last Mile Solutions all filed for bankruptcy as well.

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