The American automotive company founded by Danish automotive designer Henrik Fisker and his wife Geeta Gupta-Fisker, has been trying to stay afloat for years, but not everything went according to plan. After eight years of business, the company went bankrupt.

Over the years the debts have increased and now the owners are forced to sell off the property to avoid foreclosure. According to the company, Fisker has assets worth more than $500 million, but also debts of $500 million. That means they will survive.

In 2023, Fisker had big plans. 40,000 electric vehicles were targeted, but only 10,000 left the production lines. The Ocean SUV has received mixed reviews, with Consumer Reports claiming that the promise has not been fulfilled, while regulators have addressed issues with brakes and doors that won’t open. Further complicating the situation for Fisker was the fact that the Ocean lost its place on the list of tax-deductible electric vehicles unless leased because it was manufactured outside of North America.

At the beginning of the year, production of the Ocean model was halted even though they dropped the price to $24,999 in an attempt to raise cash, but trading in the stock was suspended in March. The company admitted that they could run out of capital by the end of 2024. Unfortunately, this turned out to be true, so discussions with potential partners such as Nissan followed, but without success.

The car market has become really cruel, and the American manufacturer is just one of the companies that, in the years to come, will experience the same fate.

Source: Reuters