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EV Startup Fisker Files for Bankruptcy

Fisker is still trying to sell its assets, which a bankruptcy filing listed as between $500 million and $1 billion.
Fisker OceanFisker Ocean at 2021 LA Auto Show; (photo/Paul Eisenstein)
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Fisker, a startup focused on electric cars, has filed for Chapter 11 bankruptcy.

The company announced the bankruptcy filing on Monday, blaming market shortfalls for its inability to meet financial obligations. In a statement, a spokesperson said the electric vehicle industry was facing a tough marketplace.

“We have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently,” the spokesperson said. “Proceeding with a sale of our assets under Chapter 11 is the most viable path forward for the company.”

In the bankruptcy filing in Delaware, parent company Fisker Group Inc. estimated assets of $500 million to $1 billion and liabilities of $100 million to $500 million. The company had raised large amounts of money from investors, and delivered its first vehicle about a year ago.

But news over the last few months cast doubts on Fisker’s ability to stay solvent this year. Production for the Ocean SUV stalled after a contractor cited “lower sales” and no expectations for a comeback, Yahoo reported last month. In GearJunkie’s first look at the Ocean EV in 2021, we noted its “quirky amenities” like doggie power windows.

It will be interesting to watch and see where this lands,” we wrote at the time.

Fisker Ocean's model

A Downward Spiral

In February, a Fisker report warned of “substantial doubt” that it could continue.

Fisker was able to deliver over 6,400 vehicles by mid-April, according to The New York Times, but it wasn’t enough. The company’s stock, once worth several billion dollars, was delisted from the New York Stock Exchange in March for “abnormally low” price levels.

Though the electric vehicle market has seen heavy investment in recent years, demand still hasn’t reached the levels that auto executives had hoped. Even the stock at Tesla has become less attractive to investors, The New York Times reported.

In Monday’s announcement, the company pledged that its reduced operations would remain in place. That includes employee wages, customer service, and compensating “needed vendors.”

This is the second time that Henrik Fisker, the founder of Fisker, has overseen a car company that went bankrupt. His previous attempt, Fisker Automotive, filed for Chapter 11 protection in 2013.

But if you’re still interested in these vehicles, they’re selling for cheap. On the website, the Fisker Ocean is on sale for $37,500 — or $24,000 off the original price tag.

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