Fisker Goes Bankrupt Amid Collapsing EV Market
Fisker, an electric vehicle company, has filed for Chapter 11 bankruptcy amid a wider downturn in the electric car market, characterized by low consumer demand and other challenges. This decision comes after the company ceased vehicle production earlier in the year to raise emergency funds due to financial struggles. Despite making significant progress in the fast development and market launch of the Ocean SUV, a model touted as being highly sustainable, and achieving initial delivery goals in North America and Europe, Fisker has faced insurmountable financial issues. The company is now discussing debtor-in-possession financing and the potential sale of its assets.
Fisker announced this week that it has filed for bankruptcy as the electric vehicle market continues to collapse amid low demand for the costly vehicles and various other concerns about electric cars.
The company has struggled for a long time and had to stop production of its vehicles earlier this year to raise hundreds of millions of dollars that it needed to stay alive. The company later announced that it had “substantial doubt about Fisker’s ability to” stay in business.
Fisker said in a statement on Tuesday that it has filed for Chapter 11 bankruptcy and is already in “advanced discussions with financial stakeholders regarding debtor-in-possession financing and the sale of its assets.”
A spokesperson for the company claimed: “Fisker has made incredible progress since our founding, bringing the Ocean SUV to market twice as fast as expected in the auto industry and making good on our promises to deliver the most sustainable vehicle in the world.”
“We are proud of our achievements, and we have put thousands of Fisker Ocean SUVs in customers’ hands in both North American and Europe,” the spokesperson added. “But like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently. After evaluating all options for our business, we determined that proceeding with a sale of our assets under Chapter 11 is the most viable path forward for the company.”
The company’s struggles comes despite the Biden administration’s efforts to destroy the gas-powered car industry by implementing the most extreme pollution restrictions in history on automakers.
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Numerous companies have been forced to scrap their plans to build electric cars, cancel their plans to go all electric, or have had to file for bankruptcy. An executive of another EVs company was recently sentenced to federal prison for lying to investors about the abilities of his company.
Consumers regularly have complained about the high prices of electric vehicles, their quality and reliability, the lack of charging stations, the time it takes to charge them, how inconvenient they can be, and their significantly decreased performance during cold weather conditions.
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