Electric vehicle (EV) startup Fisker Inc. announced late Monday that its operating subsidiary, Fisker Group Inc., has filed for Chapter 11 bankruptcy protection in the District of Delaware.
The company, known for its 2022 Ocean all-electric SUV and the luxury plug-in hybrid Karma, cited “various market and macroeconomic headwinds” as the reason for this decision.
In a statement released on its website, Fisker explained, “Like other companies in the electric vehicle industry, we have faced challenges that have impacted our ability to operate efficiently. After evaluating all options, we determined that proceeding with a sale of our assets under Chapter 11 is the most viable path forward for the company.”
The filing reveals that Fisker estimates its assets to be between $500 million and $1 billion, with liabilities between $100 million and $500 million. The company has between 200 and 999 creditors.
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This move comes as a blow to the burgeoning EV industry, as Fisker joins a growing list of startups facing financial difficulties. The company had been struggling to secure funding and recently missed a loan payment. Talks with potential investors, including a rumored “large automaker,” reportedly fell through.
Despite this setback, Fisker remains optimistic about the future of its technology and assets. The company stated that it is “in advanced discussions with financial stakeholders” to obtain financing and facilitate a sale.
The bankruptcy filing marks a significant turning point for Fisker, which was founded by designer Henrik Fisker in 2007. While the company’s future remains uncertain, its decision to pursue Chapter 11 protection highlights the challenges faced by EV startups in a competitive and rapidly evolving market.
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