- Fisker has filed for chapter, following its warnings of potential enterprise failure.
- The corporate initiated a sequence of layoffs over the previous few months.
- Fisker is considered one of a number of corporations to face headwinds from an EV gross sales slowdown.
Fisker filed for Chapter 11 chapter protections on Monday, marking a brutal blow to the startup that was as soon as price as a lot as $8 billion.
Because the EV trade at massive confronted headwinds this yr, Fisker was no exception. It encountered issue promoting its EVs and a few very public complaints from prospects because it raced to shore up extra financing and potential rescue consumers. Final week, the corporate initiated a recall for a software-related challenge that it mentioned brought on a few of its autos to immediately lose energy.
Fisker has initiated a sequence of layoffs over the previous few months. In April it instructed employees it will additional cut back its workforce to “protect money.” That was after the corporate mentioned in February that it deliberate to slash its workforce by 15%. The corporate introduced in a chief restructuring officer who was given “sole authority” over some monetary issues, together with a possible sale, as a part of an settlement with considered one of its buyers.
Fisker had been on the lookout for potential consumers to stave off chapter. Fisker CEO Henrik Fisker instructed employees in April that the startup was in talks with 4 automakers for a possible buyout, BI reported.
Fisker is considered one of a number of automakers that has confronted headwinds from an EV gross sales slowdown.
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