Fisker, Once Valued at $8 Billion, Files for Chapter 11 Bankruptcy Amidst Electric Vehicle Industry Challenges

Fisker, once valued at $8 billion, filed for Chapter 11 bankruptcy protections on Monday due to market and macroeconomic challenges. Despite seeking potential buyers to avoid bankruptcy, Fisker has been unable to secure a deal to keep the business afloat. CEO Henrik Fisker indicated that talks with four automakers for a potential acquisition were ongoing.

The electric vehicle industry has faced numerous struggles this year, including difficulties in selling electric vehicles amidst financial strains and rescue buyer concerns. In response to financial pressures, Fisker had already initiated layoffs in previous months to conserve cash. The recent recall of some vehicles due to a software-related issue that caused power loss added to the company’s challenges.

Despite these challenges, other industry players like Lordstown Motors and Arrival have also filed for bankruptcy. Industry leaders like Tesla, Rivian, and Lucid have reduced their workforces due to weakening demand, further evidencing the difficulties of maintaining a successful electric vehicle business in today’s environment. If you have information or work for Fisker, you can contact the reporter via email at gkay@businessinsider.com.