TSLA - Fisker's Bankruptcy Leaves Investors Asking Hard Questions About EV Viability | Benzinga
Electric vehicle manufacturer Fisker Inc (OTCPK: FSRN), once a market darling, filed for bankruptcy on Monday. What does Fisker’s bankruptcy mean for an EV market facing mixed signals?
What Happened: Put simply, Fisker bled money. The Manhattan Beach, California-based company had significant cash flow and manufacturing problems. It never came close to profitability as high costs eclipsed low consumer demand.
In March, it was reported that more than 40,000 Fisker customers canceled their vehicle pre-orders, a significant portion of its backlog.
In April, the National Highway Traffic Safety Administration (NHTSA) initiated a preliminary regulatory probe into the Ocean vehicles after receiving complaints that the vehicles’ doors did not open properly.
On June 13, the company announced that it would recall 18,000 Ocean SUV vehicles over software and safety compliance issues. The Ocean SUV was the only Fisker vehicle in production.
At its peak in 2021, Fisker reached a market capitalization ...