Fisker is the latest EV startup to declare bankruptcy

Another EV manufacturer bites the dust with Fisker officially declaring bankruptcy. The US-based startup filed for Chapter 11 protections late Monday, June 17, with plans to restructure its debt and sell its assets. Unfortunately, this means the Alaska EV with a designated cowboy hat space will likely never come to fruition.

"We are proud of our achievements, and we have put thousands of Fisker Ocean SUVs in customers' hands," a Fisker spokesperson stated. "But like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently."

The news is not exactly surprising, as Fisker had already halted investments in future models, like the Alaska EV. That decision came alongside concerning figures in Fisker's February release of its preliminary Q4 and 2023 earnings. Among them was its plan to lay off 15 percent of its employees - about 200 people - as it attempted a switch to a Dealer Partner model. The startup had claimed it was in talks with "a large automaker" for an influx of cash and production support.

Fisker also revealed in the report that it had produced 10,193 units of its sole EV available, the Ocean SUV, in 2023 but only delivered 4,929 vehicles. Plus, there was the fact that, despite Fisker's fourth-quarter revenue increasing to $200.1 million from the previous quarter's $128.3 million, the company still had a gross margin of negative 35 percent.

The decision to file for Chapter 11 protections adds Fisker to the ranks of other EV startups, such as Volta Trucks and Lordstown Motors. The two companies filed for bankruptcy last year in Sweden and the United States, respectively.

This article originally appeared on Engadget at https://www.engadget.com/fisker-is-the-latest-ev-startup-to-declare-bankruptcy-123056157.html?src=rss