Troubled EV startup Fisker has filed for Chapter 11 bankruptcy in the US on Monday, citing "various market and macroeconomic headwinds that have impacted our ability to operate efficiently."
Adobe, Slack's parent company Salesforce, and SAP are among Fisker's hundreds of creditors, TechCrunch reports, citing the bankruptcy filing. Fisker has reportedly faced financial and operational problems for years, from numerous lawsuits alleging lemon law violations and unpaid wages to temporarily losing track of millions of dollars. It also laid off hundreds of staff in March and conducted more layoffs last month. US transportation regulators have three ongoing investigations into Fisker, as well.
Fisker's most recent vehicle, the Ocean SUV, was released last year after being announced at CES back in 2020. It was initially expected to release in 2022, but launched in 2023. Only about 10,000 were made, and less than 5,000 were ultimately delivered to customers last year, according to the company's quarterly earnings report shared in February.
This month, all of the Ocean SUVs were recalled due to safety and compliance issues. US regulators cited issues with the SUV's instrument panel display for its warning lights as well as an issue where the vehicle could suddenly lose drive power.
Ocean SUV deliveries were slower than expected due to "delays with suppliers" and other challenges like "rising interest rates" and difficulties finding "enough skilled labor," Henrik Fisker, the company's CEO and chairman, previously said in a statement.
Fisker Group also had major financial problems back in 2013, causing the company to lay off 75% of its staff. Earlier this year, the company had been in negotiations with a large auto manufacturer to discuss a potential collaboration or investment, but those conversations fell apart. Fisker was also delisted from the New York Stock Exchange in March.