Fisker has been on the brink of collapse for several months, and now the inevitable has happened. Late Monday, the troubled EV manufacturer filed for bankruptcy protection after running out of money. The company claims it has assets worth anywhere from $500 million to $1 billion but also liabilities of $100 million to $500 million.
According to the court filing in Delaware, where Fisker filed for Chapter 11 bankruptcy, the company estimates it has between 200 and 999 creditors. In a statement, Fisker said: “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.”
The writing had been on the wall for some time. In late February, Fisker warned it could run out of money within the next 12 months, but it has happened in just four. It delivered just 4,929 vehicles in 2023 despite spending $904.9 million on operating and investing activities. Production of the Ocean electric crossover was halted at Magna Steyr’s factory in Austria in mid-March 2024.
Later in May, Magna International CEO Swamy Kotagiri and Chief Financial Officer Pat McCann both projected that production would not resume. That turned out to be a valid assumption. Fisker filed for reorganization in Austria where Magna Steyr is cutting 500 jobs.
Fisker lowered the Ocean’s base price from $38,999 to $24,999 in a desperate attempt to find buyers for unsold cars. However, Motor1’s investigation revealed that finding an entry-level Ocean Sport at that price point in the United States was virtually impossible. When the price cuts were announced, the flagship Ocean Extreme was discontinued by $24,000 to $37,499. Between the two was the midrange Ocean Ultra, at $34,999 (reduced from $52,999).
Despite so many red flags, including multiple reports of layoffs at various departments, some companies were purportedly still interested in Fisker. Business Insider cited CEO Henrik Fisker saying during an all-hands meeting in late April that there were four automakers interested in buying the company: “We do have four car companies that have signed NDAs. However, they obviously need time to get to some diligence.” Before that, Nissan had been rumored to be in a tie-up with Fisker, but the deal fell through.
Beyond the Ocean, Fisker had plans for other models. There was the Ronin, a five-seat GT convertible limited to 999 units at $385,000 apiece. The hand-built cabrio was touted as having over 1,000 horsepower, a 0 to 60 mph run in around two seconds, and a top speed of 170 mph.
There was also the Alaska, a $45,400 electric pickup truck with a 340-mile range from a 113-kWh battery pack. A cheaper version was advertised with 230 miles of range from a 75-kWh battery. The workhorse was supposed to go into production in the United States in the first quarter of 2025. Nissan was allegedly interested in this model.
Pear was supposed to be a new entry-level model, priced at $29,900, before incentives. It was claimed to have two battery options with 180 miles and 320 miles of range. Fisker promised rear- and all-wheel-drive versions, along with a high-performance Pear Extreme derivative. The base model was projected to hit 60 mph in 6.3 seconds.
This isn’t the first time a company founded by Henrik Fisker has gone bust. Fisker Automotive, the original company behind the Fisker Karma, filed for bankruptcy in November 2013. That car is still around and is being sold by a different company, Karma Automotive, owned by Chinese auto parts supplier Wanxiang Group. The latter purchased assets of Fisker Automotive for $149.2 million in a bankruptcy auction about 10 years ago.