Fisker, once considered a competitor of Tesla in the EV market, has filed for Chapter 11 bankruptcy protection, seeking to restructure its debt and sell assets in an effort to salvage its operations.
Reuters reports that the EV market has proven to be a challenging landscape for many companies, with Fisker becoming the latest to succumb to the pressures of weakening demand, fundraising difficulties, and supply chain issues. The company, founded by automotive designer Henrik Fisker, joins the ranks of Proterra, Lordstown, and Electric Last Mile Solutions, all of which have filed for bankruptcy in the past two years.
Fisker’s troubles began in February when it raised concerns about its ability to remain in business. The company’s situation worsened after failing to secure a crucial investment from a major automaker, believed to be Nissan, which would have unlocked an additional $350 million in funding from an unnamed investor. The collapse of these talks forced Fisker to explore alternative options and ultimately led to the bankruptcy filing.
Breitbart News’ Joel B. Pollak previously reported on President Joe Biden’s support of Fisker, writing:
In 2009, Biden promised that $529 million in new Department of Energy loan guarantees to Fisker Automotive to produce electric cars in Delaware would provide “billions of dollars in good, new jobs.” Four years later, Fisker filed for bankruptcy — without producing a single car in the U.S.
As Breitbart News reported at the time, Fisker was granted the loan guarantees to produce a hybrid sports car called the “Karma” for the luxury auto market, with a price of $103,000. High-profile political figures lobbied for the deal. Fisker filed for bankruptcy failed in 2013 and taxpayers lost $139 million on the venture. Republicans noted: “The jobs that were promised never materialized and once again tax payers are on the hook for the administration’s reckless gamble.”
Along with failed solar panel manufacturer Solyndra, Fisker was one of the highest-profile failures of the stimulus, which Biden oversaw, and which he has touted on the campaign trail as proof of his ability to handle America’s economic recovery.
The Biden family’s connection to Fisker is also explored in Breaking Biden: Exposing the Hidden Forces and Secret Money Machine Behind Joe Biden, His Family, and His Administration, by Breitbart News editor-in-chief Alex Marlow.
Marlow explains that Hunter Biden made his own appearance in the Fisker saga.
In October 2009, Biden, in his first term as vice president, announced that Fisker would be buying the legendary GM plant on Boxwood Road in Wilmington, where it would produce its new all-electric sports car, the Orwellian-named Karma. The company received more than half a billion dollars in loans through the Energy Department, where Biden’s niece, Missy Owens, was working as deputy chief of staff at the time. Hunter Biden’s “Rosemont” business partners were among the company’s investors.
Fisker went bankrupt within five years. Hunter, who had bought a Fisker using money transferred by Kazakh oligarch Kenes Rakishev, was named as a bankruptcy creditor.
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The brand was sold off to the Chinese and has since been reintroduced, to limited success.
In a recent statement, Fisker acknowledged the challenges it faced, stating, “Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently.” The company’s operating unit, Fisker Group Inc, estimated assets of $500 million to $1 billion and liabilities of $100 million to $500 million in the Chapter 11 filing in Delaware.
The company’s flagship Ocean SUV has faced numerous software and hardware issues, with Consumer Reports calling the vehicle “unfinished business.” The car is also under regulatory investigation for various problems, including braking issues and door failures. Despite producing more than 10,000 vehicles last year, Fisker delivered less than half of them and struggled to clear its inventory of over 5,000 cars, even after shifting to a dealership-based distribution model in January.
Read more at Reuters here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
