Electric car company Fisker files for bankruptcy protection

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Fisker on Monday became the latest all-electric vehicle startup to file for Chapter 11 bankruptcy protection amid lackluster consumer demand, significant cash burn and operational and product issues.

For investors, the writing’s been on the wall for some time as Fisker issued a going concern warning about its ability to continue as a company in February, leading its charismatic founder and CEO Henrik Fisker to disappear from social media and the limelight. It’s the latest in a series of EV companies to collapse. Other companies backed by special purpose acquisition companies, or SPAC, have also filed for bankruptcy protection.

parent company NBCUniversal is also listed as a top creditor. ″ capital intensive. You’re trying to match production, consumer demand and when they have any kind of issue with the vehicle, money has to be allocated to that,” said Stephanie Valdez Streaty, Cox Automotive Director of Industry Insights. “Also when they don’t have other revenues like to fund it ... it makes it very challenging.” Its operating unit, Fisker Group Inc.

 

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