Electric vehicle (EV) maker Fisker has filed for bankruptcy, continuing the struggling trend that is facing the EV market in 2024.
The company will seek to salvage its operations by selling assets and restricting debt after trying to commercialize and ramp up production of its electric SUVs, specifically the Fisker Ocean.
Fisker is probably the biggest name-brand EV maker to file for bankruptcy, but it is not the only one in the last few years as weakening demand continues and fund raising is harder. Other companies that have filed for bankruptcy recently include Proterra, Lordstown and Electric Last Mile Solutions, according to media outlet Reuters.
In a statement, Fisker said after evaluating all options, bankruptcy was the best possible solution for the company despite having sold thousands of its Ocean SUVs in Europe and North America.
“But like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently,” the statement said.
Why it matters
The EV market has had several highs and lows in the past few years. No doubt it is in a low time at the moment as EV sales are slowing and consumer interest is waning.
According to AAA, declining interest in the U.S. is due to higher purchase and repair prices, lack of EV chargers nationwide and continued range anxiety. Those early adopters that wanted an EV already have purchased one and the remaining consumers are in more of a wait and see approach considering some of these hurdles.
While automotive OEMs are slowing their rollout of EVs, simultaneously they are working to change the image of EVs in the minds of consumers, like General Motors trying to ease range anxiety.
Initially, automotive OEMs made plans to convert the bulk of their fleet of new cars to electrified models by the 2035-2040 timeframe. That may still be the schedule but with sales of EVs flattening out, automotive vendors are looking to boost hybrid vehicles as a potential bridge to future EV sales by consumers.
