Troubled EV startup Fisker filed for bankruptcy protection late on Monday, looking to sell its assets and restructure its debt.
The decision follows the breakdown of crucial negotiations with a major automaker, exacerbated by a rapid cash burn in its efforts to deliver the Ocean SUV in the U.S. and Europe.
The California-based company, which filed in Delaware Court, had been in last-ditch talks with another automaker to save the enterprise. According to the filing, Fisker reported assets between $500 million and $1 billion and liabilities ranging from $100 million to $500 million.
Founded by renowned automotive designer Henrik Fisker, the company had already expressed doubts about its viability in February. By March, attempts to secure investment from a major automaker failed, forcing the company to scale back its operations significantly.
In response to these setbacks, Fisker explored various options, including potential in-court or out-of-court restructurings and capital markets transactions. The company paused manufacturing and investments in future projects and announced a workforce reduction of approximately 15%.
In 2023, Fisker produced over 10,000 vehicles—far short of its forecast—but managed to deliver only about 4,700. Additionally, its vehicles are under regulatory scrutiny, with the U.S. auto safety regulator launching a probe last month into certain incidents involving its cars.
