EV startup Fisker files for bankruptcy as Ocean SUV flounders

After several months on life support, electric vehicle startup Fisker has officially filed for Chapter 11 bankruptcy protection.

The California-based EV maker has been on death watch since March, when it warned investors that it might run out of cash by the end of the year and began laying off hundreds of employees. Later that month, Fisker failed to file its annual report with regulators on time and stopped making new cars, namely the Ocean electric SUV.

“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently,” a Fisker spokesperson said in a statement.

In court papers filed Monday night, Fisker said it has between $500 million and $1 billion in assets, with as much as $500 million in liabilities. The company said it plans to ensure its operations continue, although its manufacturing pause will continue, and Fisker says it’s in “advanced discussions” to sell its assets.

While other EV companies have had trouble thriving in the increasingly competitive market — especially as EV sales growth slows — many of Fisker’s problems were caused by internal decision making and troubles with the Ocean. Fisker has only made just over 10,000 Oceans — to controversies and, often, bad reviews.

Fisker has been accused of basing the Ocean’s platform on that of a Chinese crossover made by Magna Steyr. The Austrian manufacturer is Fisker’s partner in producing the Ocean. The SUV has also been the source of more than 100 complaints filed with U.S. regulators, with owners reporting their vehicles suddenly losing power and seeing their cars’ front hoods flying up when driving at high speeds.

It doesn’t help that CEO Henrik Fisher and Geeta Gupta-Fisker, his wife and co-founder, reportedly made poor business decisions that led to a lawsuit over unpaid bills. The company’s founders and board of directors have also been sued by shareholders in California for allegedly failing to disclose material weaknesses in its financial reporting, inaccurate accounting, and delivery limitations.

Fisker is the second company started by Henrik Fisker to end up in bankruptcy. His Fisker Automotive startup filed for bankruptcy in 2013 after a roughly six-year run that saw it produce the Fisker Karma, one of the world’s first production luxury plug-in hybrid EVs. But the startup repeatedly missed production deadlines, skipped federal loan payments, and suffered from a series of management issues, leading to its collapse.

Fisker stock — already at a low of less than five cents per share — dropped almost 2% in pre-market trading Tuesday. Shares have plunged more than 97% this year.