Fisker, a prominent EV startup, has encountered a series of setbacks, with its recent troubles extensively documented. In March, it considered seeking bankruptcy advisors after discussions with Nissan regarding a potential partnership fell through. Additionally, production of its flagship Ocean EV was halted, followed by a sudden reduction in its price to expedite the clearance of existing inventory.
Now, Fisker has disclosed in a regulatory filing with the SEC that it anticipates filing for bankruptcy within the next month, unless significant financial relief or additional funding materializes. However, the likelihood of such outcomes appears slim, given the company’s ongoing challenges. This development places Fisker at risk of becoming another casualty in the fiercely competitive landscape of the EV industry.
Concerns loom over the fate of Fisker’s customers, particularly those who have purchased its $70,000 Ocean vehicles, as the company’s potential bankruptcy could jeopardize their ability to obtain servicing and support. In response to its financial predicament, Fisker plans to further downsize its workforce and streamline its operations, which includes reducing its physical presence.
Furthermore, Fisker recently disclosed its failure to make an $8.4 million interest payment, resulting in a default on a loan. To navigate these financial challenges, the company has enlisted a Chief Restructuring Officer in a bid to avert bankruptcy. The forthcoming weeks will be pivotal in determining Fisker’s fate and whether it can salvage its position in the EV market.
