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Fisker Joins Growing List of Bankrupt Electric Vehicle Companies

ByHuey Yee Ong

Jun 22, 2024

Fisker Joins Growing List of Bankrupt Electric Vehicle Companies

Fisker, the US-based electric vehicle (EV) startup, has declared bankruptcy, joining the growing list of EV companies grappling with financial difficulties. The company filed for Chapter 11 protections on June 17, aiming to restructure its debt and sell off its assets.

Fisker halted production earlier this year, and recent reports painted a bleak picture of the company’s financial health. The company’s February earnings report for Q4 and 2023 revealed significant challenges.

  • Production Inefficiency: Despite producing over 10,000 units of its Ocean SUV in 2023, Fisker only delivered 4,929 vehicles, highlighting severe operational inefficiencies.
  • Revenue Surge with Underlying Issues: The startup experienced a surge in fourth-quarter revenue, reaching $200.1 million, up from $128.3 million in the previous quarter. However, this positive trend was overshadowed by a negative gross margin of 35 percent, reflecting substantial cost overruns and profitability.

These financial hurdles were exacerbated by macroeconomic headwinds and market challenges that have plagued many in the EV sector.

In response to these difficulties, Fisker had laid off 15 percent of its workforce—approximately 200 employees—and paused investments in new models like the Alaska EV. The company was exploring a shift to a Dealer Partner model and had been in discussions with a large automaker for potential financial support and production collaboration. However, these measures were insufficient to prevent the bankruptcy filing.

A Fisker spokesperson expressed pride in the company’s achievements, highlighting the delivery of thousands of Ocean SUVs to customers. Nonetheless, the spokesperson acknowledged the severe impacts of the challenging market environment on Fisker’s operations.

Fisker’s bankruptcy adds to the list of EV startups that have faced similar fates recently. Volta Trucks and Lordstown Motors, for example, filed for bankruptcy last year in Sweden and the United States, respectively.

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Featured Image courtesy of FABRICE COFFRINI/AFP via Getty Images

Huey Yee Ong

Hello, from one tech geek to another. Not your beloved TechCrunch writer, but a writer with an avid interest in the fast-paced tech scenes and all the latest tech mojo. I bring with me a unique take towards tech with a honed applied psychology perspective to make tech news digestible. In other words, I deliver tech news that is easy to read.

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