EV startup Fisker files for bankruptcy after suspending production
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Henrik Fisker poses with a Fisker Ocean EV in Los Angeles on June 10, 2022. Photo: Michael Tullberg/Getty Images
Electric vehicle startup Fisker filed for bankruptcy protection late Monday with plans to sell its assets after recently suspending production.
Why it matters: It's the second bankruptcy for an EV company founded by former BMW and Aston Martin designer Henrik Fisker, whose vehicles have earned critical plaudits for their design but have failed to generate commercial success.
Driving the news: Fisker filed for Chapter 11 in a Delaware federal court, saying it's "in advanced discussions with financial stakeholders" to obtain financing and to sell itself.
- "Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently," a company spokesperson said in a statement.
Zoom in: The company struggled to nail down a sales strategy, swinging from direct-to-consumer to working with dealerships, Axios Pro's Alan Neuhauser reported in March.
- It also took an atypical approach to production, hiring a contract manufacturer in Austria instead of building the cars itself.
Context: It's the latest in a series of collapses by EV startups — including Lordstown Motors and Electric Last Mile Solutions — as some prospective customers balk at elevated prices and charging concerns.
What they're saying: "This wasn't hard to predict," iSeeCars.com executive analyst Karl Brauer tells Axios, saying Fisker is emblematic of a "shakeout" sweeping through the industry.
- "They all looked at Tesla's valuation and thought we will be the next Tesla," Brauer says. "What a lot of these guys don't want to admit is Tesla was unprofitable for 15 years. They had a heck of a runway."
Follow the money: Fisker was among a raft of EV startups that went public via special purpose acquisition companies (SPACs) in 2020.
Flashback: The case comes more a decade after Fisker Automotive — Henrik's first EV company — filed for bankruptcy, having failed despite acquiring hundreds of millions of dollars in loans from the U.S. government.
- The remnants of that company were eventually acquired by a Chinese parts company.
What's next: The company said it will maintain its manufacturing pause while it pursues a sale, raising serious doubts about the future of the Fisker Ocean, its primary vehicle.
(Editors note: This report was updated with quotes from iSeeCars.com executive analyst Karl Brauer.)
