California-based electric vehicle designer Fisker is on the verge of bankruptcy.
According to a filing with the Securities and Exchange Commission this week, Fisker failed to make an $8.4 million interest payment in March.
Driving the news: Fisker was worth $2.9 billion at one point and looked to be a competitor to Tesla, but without fresh capital or relief from debt holders, the company expects to file for bankruptcy within 30 days.
- Fisker also plans to lay off workers and cut its real estate footprint.
- The company has already cut its workforce from over 1,500 employees to 1,135.
- Fisker expressed doubt in the filing about its ability to continue as a going concern due to challenges in developing and manufacturing a car of sufficient quality and appeal.
- Fisker’s SUV model, the Ocean, has faced complaints and negative attention, including an investigation by the National Highway Traffic Safety Administration into its braking system and door latches.
