Image source: Bloomberg
Fisker, a U.S. electric vehicle (EV) manufacturer, filed for bankruptcy late Monday as deal talks with a major carmaker collapsed, exposing the startup to the risks of a rapid cash burn to launch its Ocean SUV in the United States and Europe.
Fisker Group Inc, the company’s unit, filed for Chapter 11 bankruptcy in Delaware, citing estimated assets of $500 million to $1 billion and liabilities ranging from $100 million to $500 million. According to the court filing, Fisker’s estimated creditors are 200-999.
Fisker explored strategic options, such as in- or out-of-court restructurings and capital markets transactions, after talks with an important carmaker ended in March.
While Fisker did not named the company, Reuters reported that Japanese manufacturer Nissan was in advanced talks to invest in the startup.
The U.S. company, established by automobile designer Henrik Fisker, expressed concerns about its capacity to stay in business in February and halted investments in future projects unless it secured an auto partnership.
Amidst challenges in selling its Ocean EVs, Fisker recently stated that it will reduce its workforce by around 15%. In 2023, it produced over 10,000 cars, less than 25% of what it initial forecast and only delivered over 4,700 of those cars.
