EV Startup Fisker Goes Bankrupt, Joins 3 Other EV Carmakers In Failed Green Effort

U.S. electric vehicle (EV) maker Fisker
filed for bankruptcy protection late on Monday, looking to sell its assets and restructure its debt, after succumbing to rapid cash burn to deliver its “Ocean” SUVs in the United States and Europe.

EV makers such as Proterra, Lordstown and Electric Last Mile Solutions have also gone bankrupt in the past two years due to depleting cash reserves, fundraising hurdles and challenges in ramping up production due to global supply chain issues. Fisker’s cars were also under investigation by U.S. regulators.

The company, founded by automotive designer Henrik Fisker, had flagged doubts about its ability to remain in business in February and a month later, its attempts to secure an investment from a big automaker failed, forcing it to rein in operations.

“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 early on Tuesday.

“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.”

It is also in advanced talks with financial stakeholders for debtor-in-possession financing, the company said, without giving further details.

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