In late February, Fisker expressed “substantial doubt” about its ability to continue operations and indicated the need for additional financing. The company reported a net loss of $463.6 million for the fourth quarter of 2023, attributing the shortfall to supply chain issues and the challenges of direct sales.
Failed Negotiations and Production Pauses
Fisker was negotiating with a “large automaker” and had an agreement with an existing investor for $150 million. However, in March, the automaker withdrew from discussions, leaving Fisker unable to meet the conditions for the financing deal.
That same month, Fisker announced a six-week production pause to “align inventory levels and progress strategic and financing initiatives.”
EV startup Fisker files for bankruptcy : Limited Fundraising
In May, Fisker reported raising only $3.46 million from an existing investor through an offering of senior secured notes due June 24, 2024. Fisker, founded by designer Henrik Fisker and his wife Geeta Gupta-Fisker, is the latest electric vehicle startup to seek bankruptcy protection. Other EV companies, including Charge Enterprises, Proterra, and Lordstown Motors, have also entered Chapter 11 in the past year.
A History of Financial Struggles
This is the second electric car company founded by Henrik Fisker to go bankrupt. Fisker Automotive, which developed plug-in hybrid electric vehicles, filed for Chapter 11 protection in 2013.
