If one EV startup were going to file for bankruptcy protection, Fisker Inc was always going to be at the top of the list. Why? Because Henrik Fisker has a history of starting automotive companies only to face closure a few years later. Now, the same fate has befallen Fisker Inc, the home of the Fisker Ocean, an all-electric SUV that seemingly failed to get off the starting line.

As a result of dwindling pre-sales, Fisker has applied for bankruptcy protection, seeking to sell its assets and restructure its debt after struggling with rapid cash depletion during the ramp-up of deliveries for its Ocean SUVs in the U.S. and Europe.

Fisker Group, the company’s operational entity, filed for Chapter 11 bankruptcy in Delaware on June 17, reporting estimated assets of $500 million to $1 billion and liabilities between $100 million and $500 million.

The court filing indicates that Fisker has between 200 and 999 creditors. The bankruptcy filing shields Fisker from creditors as it formulates a plan to repay them.

Fisker stated in a press release:

“After exploring all available options for our business, we determined that proceeding with a sale of our assets under Chapter 11 is the most viable path forward for the company.”

“Like other companies in the electric vehicle industry, we have encountered various market and macroeconomic challenges that have impacted our operational efficiency,”

Founded by automotive designer Henrik Fisker, the company expressed doubts about its future viability in February and had paused investments in future projects until securing an automotive partnership.

Nissan was in advanced talks to invest in Fisker, aiming to gain access to Fisker’s Alaska electric pickup truck but the deal fell short of the finish line.

Production of the Ocean, which had been forecasted much higher, was halted in March after manufacturing just over 10,000 vehicles in 2023 at Magna Steyr in Austria, with only about 4,700 delivered.

In response to struggles selling its Ocean EVs, Fisker announced a workforce reduction of approximately 15 percent.

Fisker faced regulatory safety investigations and pressures from tight access to capital in a high-interest rate economy, costs associated with marketing and distributing its vehicles, and slower-than-expected EV demand, all contributing to the depletion of its cash reserves.