Business

U.S. EV Maker Fisker Declares Bankruptcy

Jun 18, 2024 1 min read

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Fisker Inc., a U.S. electric vehicle manufacturer, has filed for Chapter 11 bankruptcy following the collapse of investment discussions with a major automaker. The company has listed assets estimated between $500 million and $1 billion and liabilities ranging from $100 million to $500 million. The bankruptcy filing aims to protect Fisker from creditors while it formulates a plan to repay them.

The company, founded by automotive designer Henrik Fisker, had previously halted investments into future projects, citing tight access to capital in a high interest rate economy, high marketing and distribution costs, and slower-than-expected demand for electric vehicles. The termination of the investment talks led Fisker to explore strategic options, including both in- and out-of-court restructurings and capital market transactions. The firm had also faced rapid cash burn in its efforts to deliver its 'Ocean' SUVs in the United States and Europe.

#auto #electric-vehicles #bankruptcy #green-energy #esg #startups #finance #markets

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