Tesla rival Fisker becomes latest electric car company to fail

Fisker has become the latest pure-electric vehicle start-up to run out of road and cash after the US electric car manufacturer announced it was halting car production and filing for bankruptcy.

The move came after the Tesla rival failed to secure an investor to finance the ailing company, which had already warned of trouble ahead if more cash was not forthcoming.

Talks with a major manufacturer, widely believed in the industry to be Nissan of Japan, about a financial injection have now collapsed.

Fisker is the most high-profile electric maker to fail amid a slow-take up of electrics by consumers who are worried about range and warnings of poor resale values. Recent electric failures include US busmaker Proterra, Swedish truck builder Volta and US-based electric pick-up truck manufacturer Lordstown Motor Corp.

Founded by Danish car designer Henrik Fisker in 2016, Los Angeles-based Fisker had ambitious goals, but development of the Ocean crossover SUV unveiled in 2021 took longer than planned, while software problems dogged the car after it went on sale in mid-2023. Production was also hit by problems with suppliers.

Fisker has assembled some 10,000 Oceans and delivered around 4,000 of them to customers. It is still unclear how service and maintenance will continue for existing owners.

At the end of February, Fisker shares fell by 37% after the start-up issued a warning about its continued existence. According to a press release at the time, there were “significant doubts about the company’s ability to continue as a going concern.”