Fisker runs out of road, files for bankruptcy

18th Jun 2024 08:43

(Sharecast News) - US electric vehicle startup Fisker on Monday filed for bankruptcy protection after talks with an unnamed major car maker on a cash injection ended without a deal and would now look to sell assets.

The company in February warned about its ability to remain in business after earlier announcing weaker-than-expected earnings and plans to cut 15% of its workforce.

"Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently," Fisker said in a statement.

"After evaluating all options for our business, we determined that proceeding with a sale of our assets under Chapter 11 is the most viable path forward for the company."

Fisker listed assets of between $500m - $1bn and liabilities of $100m - $500m in its bankruptcy petition.

In March the company said it had secured $150m in financing from an existing lender, but this was tied to the startup securing investment from the unidentified automaker.

Fisker made more than 10,000 vehicles last year, less than a quarter of forecast production and delivered only around 4,700.

Reporting by Frank Prenesti for Sharecast.com