Troubled EV startup Fisker Inc., founded by renowned designer Henrik Fisker, has filed for Chapter 11 bankruptcy protection. This comes after months of issues with its highly anticipated Ocean SUV, including recalls and numerous lemon law lawsuits. The California-based company, which filed for bankruptcy in Delaware, had been desperately seeking a deal with another automaker to salvage the business. According to the filing, Fisker estimates its assets to be between $500 million and $1 billion, with liabilities of $100 million to $500 million.
The court documents reveal that Fisker has between 200 and 999 creditors, including major companies like SAP, Adobe, Salesforce, and Ansys. This turn of events comes just a year after Fisker delivered its all-electric Ocean SUV to customers. Unfortunately, the vehicle faced a multitude of software and mechanical problems, leading to customer dissatisfaction. TechCrunch’s previous reporting highlighted the company’s internal struggles with customer service and financial management.
Despite using contract manufacturer Magna, Fisker was only able to deliver a few thousand vehicles. In an attempt to save cash, the company implemented multiple rounds of layoffs and other cost-cutting measures. Additionally, Fisker shifted its business model earlier this year by partnering with established dealers instead of selling directly to customers, following in the footsteps of Tesla. However, these efforts proved insufficient to rescue the company.
The bankruptcy filing marks a significant setback for Fisker Inc., which had aimed to make a name for itself in the competitive EV market. It serves as a cautionary tale for other startups in the industry, highlighting the challenges of overcoming production issues, maintaining customer satisfaction, and managing finances effectively. As the story continues to unfold, industry observers will be closely watching for any potential buyers or resolution for Fisker’s assets and debts.