It marks the second failed automotive venture for founder Henrik Fisker, whose Fisker Automotive went under in 2013|Werner Bayer
All-electric vehicle startup Fisker filed for bankruptcy protection on Monday, just a year after its first car, Ocean SUV, hit the market. The company is the latest to go bankrupt in the EV industry, following others like Proterra, Lordstown Motors and Electric Last Mile Solutions.
It marks the second failed automotive venture for founder Henrik Fisker, whose Fisker Automotive went under in 2013. He is famed for designing the BMW Z8 and Aston Martin DB9.
What happened?
Fisker entered the market with the Ocean amid low consumer demand for EVs. High cash burn and operational issues added to its woes.
Regulatory investigations and missed financial deadlines further strained the EV maker. A pivot to a dealership sales model didn’t improve sales either. It produced 10,000 vehicles but delivered only about 4,900 in 2023.
The company also struggled with the complexities of being publicly traded. Despite raising over $1 billion from investors, the New York Stock Exchange delisted Fisker due to low share prices, triggering a $180 million debt repayment obligation.
The company aimed to replicate Tesla’s success by outsourcing manufacturing and emphasizing software features. However, the Ocean SUV faced software-related issues and quality criticism, resulting in recalls.
Other EV startups like Nikola and Faraday Future are still operating but face significant challenges. Companies like GM, Ford and Tesla have also lowered their EV sales targets.