US New Electric Vehicle Startup Fisker Ultimately Files for Bankruptcy

American electric vehicle startup Fisker has ultimately entered bankruptcy proceedings.

According to major foreign media, Fisker filed for bankruptcy protection under Chapter 11 late on the night of the 17th (local time). Fisker's assets were reported to be between $500 million and $1 billion, with liabilities ranging from $100 million to $500 million.

[Image source=Reuters Yonhap News]

Fisker's bankruptcy was virtually inevitable. Earlier this year, Fisker announced it would explore strategic options, including restructuring and capital market transactions.

Having struggled with financial difficulties, Fisker had been negotiating investments with major automakers, but these talks reportedly fell through. Fisker did not disclose the name of the company, but major foreign media reported it was the Japanese automaker Nissan.

Founded by Danish automotive designer Henrik Fisker, Fisker was once considered one of the leading electric vehicle startups aspiring to become the next Tesla. However, amid a slowdown in electric vehicle demand and intensified market competition, Fisker faced compounded setbacks including production issues and regulatory investigations due to technical defects, leading to financial distress.

In March, Fisker was delisted from the New York Stock Exchange (NYSE) after failing to meet listing requirements. In response, Fisker signed contracts with financial advisors and undertook restructuring measures such as employee layoffs to prepare for potential bankruptcy risks.

Major foreign media reported, "In a high-interest-rate environment with reduced access to capital, increased costs related to vehicle marketing and distribution, and a slowdown in electric vehicle demand have exacerbated financial difficulties," adding, "As competitors postpone their electric vehicle expansion plans, the visible decline in electric vehicle demand has hit startups like Fisker hard."