Electric vehicle maker Fisker has filed for Chapter 11 bankruptcy protection, becoming the second electric startup to do so in the last year. The company cited various market and macroeconomic challenges that have impacted its ability to operate efficiently. Fisker Group Inc. estimated its assets to be between $500 million and $1 billion, with liabilities ranging from $100 million to $500 million and between 200 and 999 creditors.
Fisker, founded by designer Henrik Fisker, is known for its 2022 Ocean all-electric SUV and the luxury plug-in hybrid Karma launched in 2011. The company, based in Manhattan Beach, California, aimed to compete with industry leaders like Tesla and traditional automakers in Detroit.
However, the electric vehicle market has faced a slowdown as manufacturers struggle to attract mainstream buyers due to a lack of infrastructure and rising inflation affecting car loan affordability. Electric vehicle sales grew only 3.3% in the first quarter of this year, significantly lower than the 47% growth seen last year.
Other electric startups, such as Lordstown Motors Corp. and Rivian, have also faced challenges. Lordstown sought bankruptcy protection last summer, while Rivian paused construction of its manufacturing plant in Georgia to optimize production and reduce costs.
Fisker Inc. and its U.S. subsidiaries, along with those outside the U.S., are not part of the bankruptcy filing. The company is currently in advanced discussions with financial stakeholders regarding debtor-in-possession financing and the potential sale of its assets.
These developments reflect the broader struggles within the electric vehicle industry as companies navigate market dynamics and consumer demand. The industry's rapid growth has prompted leading companies like Tesla to implement price cuts and job reductions to adapt to changing conditions.
