Fisker, an EV startup, has ultimately filed for bankruptcy protection. Amid a slowdown in the unexpected surge in demand for electric vehicles and the sluggish growth in the EV market, the company had no choice but to seek bankruptcy protection in court.
According to foreign media such as the Wall Street Journal (WSJ), on the 18th, Fisker, a California-based EV startup that had been in operation for seven years, filed for bankruptcy protection roughly a year after launching its electric vehicle in the market.
Last summer, Fisker launched its first model, an electric SUV called Ocean, but the timing was unfortunate.
The EV market was already showing signs of cooling, with an apparent oversupply of electric vehicles.
Attempting to replicate Tesla’s success, Fisker hit rock bottom roughly a year after debuting its first model.
EV startups, including Fisker, began with ambitious goals. Driven by predictions that electric vehicles would eventually replace nearly all internal combustion engine vehicles due to the climate crisis, they raised substantial capital through initial public offerings (IPOs).
However, substantial investments were required to develop new electric vehicles, construct production facilities, and establish sales networks. As a result, almost all electric vehicle companies, except for Tesla, remain unprofitable. Ironically, the more electric vehicles they sell, the more losses they suffer.
Fisker stated that it is in contact with a major automobile company to explore investment and joint production opportunities to alleviate its financial difficulties. However, these negotiations broke down last March.
Fisker has already nearly exhausted over a billion dollars secured from investors and defaulted on the bonds of key investors.
