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American electric vehicle startup Fisker files for bankruptcy

By AFP

June 18, 2024 04:34 PM


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US electric carmaker Fisker said it filed for bankruptcy Monday, citing inflation woes and production problems.

Fisker is in "advanced discussions with financial stakeholders" over the sale of its assets, according to a company statement announcing the bankruptcy proceedings published overnight into Tuesday.

"Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently," it added.

Fisker has been in financial difficulty for months and had already halted the production of its Ocean model, which was launched in 2022.

The company was valued at $2.9 billion when it went public in 2020, through a merger with a subsidiary of investment firm Apollo.

In February, founder Henrik Fisker reflected on a challenging 2023 with delays for parts, labor issues, and high inflation hitting demand.

US carmakers are facing tough competition from producers in China, with top American firm Tesla announcing more than 14,000 job cuts in April.


AFP


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