Fisker’s financial situation plummets as bankruptcy nears

The electric vehicle designer face a bleak future without fresh capital in the near future.

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.
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