Why did Fisker go out of business?
In early 2024, the company experienced intense financial difficulties, and its shares were delisted from the NYSE. Fisker defaulted on a short-term loan according to filings with the United States Securities and Exchange Commission and stated there was substantial doubt about being able to sustain ongoing operations. On June 17, 2024, Fisker filed for Chapter 11 bankruptcy protection in Delaware, listing liabilities at between $100 million to $500 million and assets between $500 million and $1 billion. The company stated that possible deal talks with a big automaker collapsed, which led it to its bankruptcy.Documents revealed since the initial filing, though, make it seem unlikely the company will recover. Update 7/22/24: Fisker’s largest secured creditor revealed in court proceedings it intends to convert the bankruptcy to Chapter 7 liquidation, which will put the company entirely out of business.The last vestiges of Fisker are slowly disappearing. The company went bankrupt in the summer of last year after a frantic few months trying to find money to keep it alive. Wildly, only a year before, the company was previewing three new models, the budget Pear, the Ronin supercar, and the Alaska pickup truck.Update 7/22/24: Fisker’s largest secured creditor has revealed in court proceedings it intends to convert the bankruptcy filing to Chapter 7 liquidation, which will put Fisker entirely out of business.