EV startup Fisker files for bankruptcy

Fisker, the US electric carmaker, announced on Monday that it has filed for bankruptcy, attributing its decision to inflation challenges and production issues.

In a statement released overnight into Tuesday, the company revealed that it is currently engaged in advanced discussions with financial stakeholders regarding the sale of its assets.

The statement cited various market and macroeconomic headwinds affecting the electric vehicle industry, leading to operational inefficiencies.

Fisker has been grappling with financial difficulties for several months and had previously halted production of its Ocean model, which debuted in 2022.

Initially valued at $2.9 billion when it went public in 2020 through a merger with a subsidiary of investment firm Apollo, the company has faced significant challenges since then.

Founder Henrik Fisker acknowledged a challenging 2023 marked by delays in parts procurement, labor issues, and decreased demand due to high inflation.

The US car industry is experiencing stiff competition from Chinese producers, with leading American firm Tesla announcing over 14,000 job cuts in April.