Fisker Inc.’s recent 8-K filing has cast a shadow over the future of the EV automaker, as it failed to repay a loan of nearly $3.5 million last month, signaling potential bankruptcy for the company’s second iteration.
The filing paints a grim picture for Fisker 2.0 and its flagship Ocean SUV, which has faced challenges since its launch, including software issues and lower-than-expected sales. Despite efforts to rebound, such as lowering production targets and seeking financial backing from an OEM partner, Fisker has struggled to maintain liquidity.
In March 2024, Fisker expressed “substantial doubt” about its ability to continue, prompting discussions of bankruptcy. Despite attempts to avoid this fate, including halting Ocean production and offering significant discounts on existing inventory, the company has faced cancellations from reservation holders and a decline in public confidence.
Following a filing for reorganization and court protection by Fisker GmbH in Austria, similar to Chapter 11 bankruptcy in the US, the company failed to make a significant loan payment, further highlighting its financial struggles.
According to an 8-K filing submitted to the SEC on May 29, 2024, Fisker defaulted on a loan totaling $3,456,000, prompting the Noteholder to demand immediate repayment. This latest development could push Fisker closer to bankruptcy, as it grapples with millions owed in loans and the looming threat of additional fees and interest.
While the news of Fisker’s financial troubles is not unexpected, given its recent challenges, it underscores the harsh realities faced by EV startups in a competitive market. The situation is ongoing, and we will continue to monitor Fisker’s financial status closely.