Troubled electric vehicle maker Fisker files for bankruptcy

NEW YORK - Electric vehicle (EV) start-up Fisker has filed for bankruptcy after discussions with a major automaker about an investment ended without a deal.

Fisker listed assets of between US$500 million (S$675.9 million) and US$1 billion and liabilities of between US$100 million and US$500 million in its bankruptcy petition filed on June 17 in Delaware. The filing protects Fisker from creditors while it works out a plan to repay them.

The EV maker sought bankruptcy after earlier announcing weaker-than-expected earnings and plans to cut 15 per cent of its workforce. Fisker in February said there would likely be “substantial doubt” about its ability to continue operating if it can’t secure more financing.

Fisker said in March that it secured US$150 million in financing from an existing lender, but the financing was contingent upon the start-up securing investment from an unidentified automaker. But talks with the automaker were terminated without a deal, Fisker said.

The bankruptcy comes as EV makers struggle to adapt to slowing sales in the United States and Europe and waning consumer demand. Although enthusiasm for EVs remains strong, nearly 60 per cent of global EV sales in 2024 will be in China, BloombergNEF said in a January report.

Fisker has struggled with with production issues and technical glitches and last year lowered its production guidance.

The company follows a handful of other EV start-ups into bankruptcy including Charge Enterprises, which installs EV charging stations, which filed for Chapter 11 protection in March. EV makers Lordstown Motors and Proterra filed bankruptcy last year. BLOOMBERG