Fisker Files for Bankruptcy, Plans to Sell Assets

Embattled Electric Vehicle Company Seeks New Investors

Fisker Inc., an electric vehicle startup, has filed for Chapter 11 bankruptcy protection. The move comes after the company failed to secure last-ditch financing to rescue its ailing operations. Fisker is now seeking to sell its assets, valued between $500 million and $1 billion, to raise funds to repay its creditors.

Failed Fundraising Efforts

Fisker has struggled to raise capital in recent months. In November 2023, the company announced a $345 million offering of senior secured notes but failed to sell any of the bonds. The company has also been in negotiations with a holder of its convertible notes for an additional $150 million in funding but has yet to reach an agreement.

Bankruptcy Filing

WEB Fisker Inc., an electric vehicle company, filed for Chapter 11 bankruptcy protection on March 21, 2024. The move comes after the company failed to secure last-ditch financing to rescue its ailing operations. Fisker is now seeking to sell its assets, valued between $500 million and $1 billion, to raise funds to repay its creditors.

Future Uncertain

The future of Fisker is uncertain. The company has been working to ramp up production of its first electric vehicle, the Ocean, but has faced delays and supply chain issues. With the bankruptcy filing, Fisker's plans to bring the Ocean to market are now in jeopardy.

Impact on Electric Vehicle Industry

Fisker's bankruptcy filing is a setback for the electric vehicle industry. The company had been seen as one of the most promising EV startups, with a strong brand and a compelling product. Its failure highlights the challenges facing the electric vehicle sector, which is still struggling to gain widespread adoption and profitability.