Struggling EV Startup Fisker Could Go Bankrupt Within 30 Days

Things are looking increasingly dire for the California-based electric car company.

2023 Fisker Ocean

Tim Levin

By: Tim Levin

Apr 23, 2024 at 1:24pm ET

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Things have gone from bad to worse for Fisker. On Tuesday, the embattled electric vehicle startup announced in a regulatory filing that it expects to file for bankruptcy within the next 30 days if it can't get relief from its creditors or raise some extra cash.

Fisker also said it missed an $8.4 million interest payment in March, leading it to default on that loan. To stave off the worst, the company is cutting costs. In the filing, it said it "intends to further reduce its workforce and streamline its operations, including reducing its physical footprint."

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Fisker On The Brink

American electric vehicle startup Fisker has been struggling financially for months. It started selling vehicles last year but has had to grapple with problematic vehicles and slow sales.

Fisker has been struggling to stay afloat for some time now. In February, the company said that it could run out of money within 12 months and that it planned to cut 15% of staff. It paused all development of future vehicles and sought a life raft from an established car manufacturer, reportedly Nissan. But those talks ultimately fell through. It was delisted from the New York Stock Exchange due to an "abnormally low" share price.

Fisker Ocean

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To generate as much cash as possible, Fisker slashed prices for the Ocean SUV, its debut product, by up to $24,000. Fisker began delivering its SUV in the U.S. in 2023 but struggled to ramp up sales. On Monday, Fisker also said it had hired a Chief Restructuring Officer in a separate filing.

The company's decline has left Ocean owners in a difficult spot. Their vehicles, some of which cost around $70,000 when new, have depreciated by thousands of dollars virtually overnight. The prospect of bankruptcy raises doubts about whether Ocean drivers will be able to get their vehicles serviced.

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While many Ocean owners like their cars, the vehicles have been far from worry-free. Owners told InsideEVs about all sorts of nagging software bugs, as well as more serious issues. The National Highway Traffic Safety Administration is investigating various problems with the vehicles.

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Of course, there's still a chance that Fisker will pull through with the help of some partnership. But the clock is ticking.

Are you a Fisker owner, employee, or former employee with something to share? Contact this reporter: tim.levin@insideevs.com.

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