Electric car company files bankruptcy as EV market folds

Fisker is filing for Chapter 11 bankruptcy, the electric vehicle (EV) company announced Tuesday.

‘Like other companies in the electric vehicle industry’

“Fisker has made incredible progress since our founding, bringing the Ocean SUV to market twice as fast as expected in the auto industry and making good on our promises to deliver the most sustainable vehicle in the world,” a spokesperson said.

The California-based company added it is not the only EV maker that has been struggling to stay in business.

“We are proud of our achievements, and we have put thousands of Fisker Ocean SUVs in customers’ hands in both North American [sic] and Europe. 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. After evaluating all 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.”

Fisker’s collapse is the latest indication that the EV industry is folding due to sinking demand. Other EV industry players are also cutting their losses as they jump ship.

Hertz

In March, Hertz CEO Stephen Scherr resigned after his bet on EVs cost the car rental giant its biggest quarterly loss since 2020. Hertz had been praised by the Biden administration for its ambition to convert 25% of its fleet to EVs by the end of this year. In January, however, the company announced it would instead be selling its 20,000 EVs — including Teslas — at heavily discounted prices and replacing them with gas-powered cars.

Mercedes-Benz

Mercedes-Benz also recently had to give up its ambition to only sell electric cars by 2030. Instead, EVs are expected to make up only 50% of the German carmaker’s sales over the next decade.

Apple

In February, Apple abandoned its multi-billion dollar effort to create an electric car. Despite being a decade in the works and employing 2,000 people, Project Titan was axed due to falling consumer demand.

Aston Martin

A lack of consumer demand is also partly to blame for Aston Martin placing its battery-operated “supercar” on hold until 2026.

“Demand, certainly at an Aston Martin price point, is not what we thought it was going to be two years ago,” said Aston Martin Executive Chairman Lawrence Stroll. 

Ford

In December, Ford slashed production of its flagship EV at its assembly plant in Dearborn, Michigan by half. The automaker cut the monthly production quote for the all-electric F-150 Lightning pickup truck from 3,200 units to 1,600 units per month.

Biden administration continues to force EV production

Nevertheless, the Biden administration in March issued new climate mandates aimed at forcing more EV production. The new rules from the Environmental Protection Agency (EPA) contain tight emissions standards that will require 56% of new vehicle sales to be fully electric by 2032, with an additional 13% required to be hybrids.