Fisker Inc., an electric vehicle manufacturer, is facing imminent bankruptcy as the company struggles to meet its financial obligations. Within 30 days, Fisker intends to seek bankruptcy protection if it cannot secure waivers from its debt holders or raise sufficient capital to settle its debts. The company’s financial situation has taken a drastic downturn, with its cash balance dwindling from $736.5 million at the end of 2022 to just $325.5 million by December 2023. Despite producing around 10,200 Ocean SUVs in 2023, Fisker only managed to deliver 4,929 vehicles during the year, further exacerbating its financial difficulties.
In an effort to address its mounting inventory and financing issues, Fisker initiated a six-week production pause in March. Additionally, the company announced price cuts of up to $24,000 on its Ocean SUV last month in an attempt to boost sales. However, these measures have not been sufficient to stabilize the company’s financial situation.
Fisker’s financial woes are not an isolated incident within the electric vehicle industry. Earlier this month, Canoo Inc., another EV maker, raised concerns about its ability to continue operating as a going concern without additional funding. Last year, Lordstown Motors also filed for bankruptcy protection, highlighting the challenges facing the EV industry.
Fisker is now exploring options to restructure its current debts and secure alternative financing. However, the company has acknowledged that there is no guarantee that it will be successful in these efforts. In the meantime, Fisker plans to reduce its workforce and streamline its operations to cut costs. The company’s future remains uncertain as it navigates the complexities of bankruptcy proceedings and seeks to secure its financial footing.
