Fisker Electric Vehicle Manufacturer Declares Bankruptcy Amid Cash Shortage

Money | June 18, 2024, 11:44 a.m.

Fisker, a high-profile electric vehicle start-up, filed for bankruptcy protection after struggling with financial difficulties and failing to meet production targets for its Ocean S.U.V. Despite delivering over 6,400 vehicles, the company faced escalating financial turmoil and defaulted on a loan repayment. Talks for a potential investment fell through, leading to the delisting of its stock from the New York Stock Exchange due to extremely low price levels. Fisker's bankruptcy filing, just one year after delivering its first vehicle and four years after going public, reflects the challenges many start-ups in the electric vehicle industry face. Despite emphasizing design and software innovation, such as a rotating dashboard screen, Fisker's downfall serves as a cautionary tale for investors with lofty expectations in the fast-growing but highly competitive electric vehicle market.