(Reuters) – U.S. electric vehicle (EV) maker Fisker (OTC:) filed for bankruptcy protection late on Monday as it seeks to sell its assets and restructure debt after it succumbed to a rapid cash burn to deliver its Ocean SUVs to United States. States and Europe.
Electric vehicle makers such as Proterra, Lordstown and Electric Last Mile Solutions have also gone bankrupt over the past two years due to dwindling cash reserves, fundraising hurdles and problems ramping up production due to global supply chain issues. Fisker’s cars were also under investigation by US regulators.
The company, founded by car designer Henrik Fisker, expressed doubts in February about its ability to stay in business, and a month later its attempts to secure investment from a major automaker failed, forcing it to scale back its operations.
“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate effectively,” Fisker said in a statement Tuesday morning.
“After evaluating all options for growing our business, we have determined that a Chapter 11 sale of our assets is the most viable route for the company.”
The company is also in discussions with financial stakeholders about debtor-in-possession financing, the company said, without elaborating.
The company’s operating unit, Fisker Group Inc., filed for Chapter 11 bankruptcy in Delaware, listing estimated assets of $500 million to $1 billion and liabilities of $100 million to $500 million. According to the court, he has about 200-999 creditors.
After Fisker failed to raise funds from a major automaker, which Reuters reported was Japanese automaker Nissan (OTC:), it began exploring options including in-court or out-of-court restructuring and capital markets deals.
The company paused production as well as investments in future projects until it entered into an automotive partnership and said it would cut its workforce by about 15%.
Fisker produced more than 10,000 vehicles in 2023, less than a quarter of its forecast, but delivered only about 4,700. Its vehicles are under regulatory investigation over certain incidents, including an investigation launched by the U.S. auto safety regulator last month.