Fisker, a US-based electric vehicle (EV) startup, has filed for Chapter 11 bankruptcy. The company had warned of financial difficulties earlier this year, citing insufficient funds to continue operations beyond 2024.
Fisker's only product, the Ocean Electric SUV, has encountered numerous challenges. Only half of the 10,000 units produced last year were delivered. Marques Brownlee, a popular YouTuber, gave the Ocean a negative review, which harmed Fisker's stock and reputation.
CEO Henrik Fisker acknowledged quality issues with the Ocean, blaming incompatible software from various suppliers. Despite efforts to address these issues, Fisker faced increasing competition from established automakers such as Tesla, Hyundai, and Ford, as well as the rising Chinese EV giant BYD.
The broader EV market is also slowing, with global sales expected to grow by 21% this year, down from 35% in 2023. High costs and limited charging infrastructure remain barriers to faster EV adoption.
Fisker is now in advanced talks with financial stakeholders about selling its assets to resolve its financial issues.
Image Source: Multiple Agencies
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