Bankruptcy for Fisker: California EV Company Once Worth $2.9B Files for Protection

Following the recall of 6,864 of its 2023 Ocean SUVs a few days prior, electric vehicle company Fisker filed for Chapter 11 bankruptcy on Monday.

Henrik Fisker, the CEO of Fisker, is requesting bankruptcy protection for the California-based electric vehicle manufacturer as a result of the company’s poor sales and the June 5 recall of thousands of its single production model.

Founded in 2016, Fisker had a valuation of $2.9 billion; however, the company’s sales of its only model, the Ocean SUV, have not kept pace with production expenses.

In a prepared statement released on Monday, Fisker officials stated, “Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently.”

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“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,” Fisker executives stated.

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After cutting costs and restructuring under bankruptcy protection, company leaders plan to carry on with business as usual.

The Ocean SUV was the subject of the automaker’s recall, which dated back a few days, since it might have abruptly lost driving power and entered “safe state protection mode.”

Fisker claims that owners don’t need to take their cars in for maintenance because the issue can be resolved with an over-the-air software update.

On June 5, Fisker filed a recall report for warning lights that were displayed wrongly with the National Highway Traffic Safety Administration.