After speculations and hiring bankruptcy consultants in March, EV maker Fisker has officially filed for Chapter 11 bankruptcy protection. The carmaker had big ambitions with multiple products lined up, however, after a deal with another major carmaker fell through, Fisker took the decision.
In an official statement, Fisker announced, “Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently. 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.”
For those who are not aware, this is Fisker’s second stint in automobiles, as the first company, which sold the Fisker Karma, folded in 2012 due to bankruptcy. Later, Henrik Fisker, along with Geeta Gupta-Fisker, his wife founded Fisker Inc., with ambitions to sell electric vehicles. The company raised $50 million Series C funding from Moore Strategic Ventures, however, in February, Fisker announced that it did not have enough capital.
On the electric automotive front, Fisker had the Ocean on sale, an all-electric SUV that competed directly with the Tesla Model Y. The Fisker Ocean production was halted in March. The carmaker planned to build 42,000 Oceans in 2023 but produced just 10,000 and sold 5,000 units. The company also had plans to enter India, setting up an office in Hyderabad in 2022.
