{"id":2271461,"date":"2024-06-19T12:20:02","date_gmt":"2024-06-19T16:20:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/once-promising-electric-vehicle-company-crashes-and-burns-files-for-bankruptcy\/"},"modified":"2024-06-19T12:25:19","modified_gmt":"2024-06-19T16:25:19","slug":"once-promising-electric-vehicle-company-crashes-and-burns-files-for-bankruptcy","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/once-promising-electric-vehicle-company-crashes-and-burns-files-for-bankruptcy\/","title":{"rendered":"Promising Electric Vehicle Firm Collapses, Declares Bankruptcy"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fonce-promising-electric-vehicle-company-crashes-and-burns-files-for-bankruptcy%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2271461&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Henrik \u200cFisker\u2019s electric vehicle (EV) \u2063startup, Fisker Inc.,\u200c has declared bankruptcy once again.\u2063 The Delaware Chapter 11 \u200dbankruptcy filing revealed that the company had\u200b assets of $500 million to $1 billion \u200cagainst \u2063liabilities of $100 million to $500 million. This financial turmoil stemmed largely from the challenges and high costs \u2062associated with\u2064 launching its only model, the Fisker Ocean crossover SUV.<\/p>\n<p>The\u200d Fisker \u200cOcean, priced under $40,000 and intended as a mass-market vehicle, faced significant criticisms regarding design flaws and unreliable features. Consumer Reports highlighted issues such as the vehicle&#8217;s nauseating \u2063drive quality, intermittent safety\u200b features, and subpar interior quality. Additionally, some initial reviews\u200d labeled it as severely flawed, affecting the company\u2019s \u2064reputation and \u2064sales.<\/p>\n<p>Efforts to secure rescue deals, including discussions with an unnamed automaker speculated to be Nissan, failed to materialize, ultimately leaving the company with no choice \u2064but to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/one-of-the-largest-public-bitcoin-miners-in-u-s-is-teetering-on-bankruptcy\/\" title=\"One of the Largest Public Bitcoin Miners in U.S. Is Teetering on Bankruptcy\">seek bankruptcy protection<\/a>. The case of\u2062 Fisker\u200c Inc. is part of a broader trend where \u200dseveral EV startups like Proterra,\u200d Lordstown, and Electric Last Mile Solutions have also <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/china-cuts-key-interest-rate-amid-property-slump-currency-risks\/\" title=\"China reduces interest rate due to property market decline and currency instability.\">faced financial difficulties<\/a> despite \u200dsubstantial initial investments. <\/p>\n<p>Fisker Inc.&#8217;s future remains uncertain, echoing \u200bthe problems faced by Fisker&#8217;s earlier automotive venture, which also succumbed to bankruptcy after producing the Fisker Karma. This ongoing issue raises broader questions about the viability and market readiness \u2063of new EV entrants despite growing interest and investment in\u200b electric mobility.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<header> <a href=\"https:\/\/www.westernjournal.com\/commentary\/\">  Commentary <\/a>   <span> <\/p>\n<p><a href=\"https:\/\/www.westernjournal.com\/author\/cillianzeal\/\">  <\/a> <\/p>\n<p> <span>   By <a href=\"https:\/\/www.westernjournal.com\/author\/cillianzeal\/%20\"><span>C. Douglas Golden<\/span><\/a> <\/span> <span>   June 19, 2024 at 6:45am <\/span> <\/span>  <\/header>\n<section>\n<p>Electric vehicle industry darling and entrepreneur Henrik Fisker\u2019s company has gone bankrupt. Again.<\/p>\n<p>In what was arguably the least-surprising news ever for those of us who follow the automotive industry, Fisker \u2014 the <em>second<\/em> eponymous heavily hyped electric vehicle startup created by the former BMW and Ford designer \u2014 filed for bankruptcy protection late Monday, according to <a href=\"https:\/\/www.reuters.com\/business\/autos-transportation\/ev-startup-fisker-files-bankruptcy-2024-06-18\/\" target=\"_blank\" rel=\"noopener\">Reuters<\/a>.<\/p>\n<p>The brand\u2019s parent company, Fisker Group Inc., said in the Delaware Chapter 11 bankruptcy filing that its assets totaled between $500 million and $1 billion. Its liabilities, meanwhile, were between $100 million and $500 million.<\/p>\n<p>The copacetic corporate spin on the bankruptcy filing was that the cash burn from introducing the brand\u2019s only automobile, the Fisker Ocean crossover, had left it without the capital to continue without protection from between 200 and 999 creditors, the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/tennessee-judge-ends-conservatorship-between-michael-oher-and-tuohy-family\/\" title=\"Tennessee judge terminates Oher-Tuohy conservatorship.\">court filing stated<\/a>.<\/p>\n<p>Furthermore, talks with an unnamed automaker for a rescue deal this year\u00a0 \u2014 rumors were that it was Nissan, according to <a href=\"https:\/\/www.cnbc.com\/2024\/06\/18\/ev-startup-fisker-files-for-bankruptcy-aims-to-sell-assets.html\" target=\"_blank\" rel=\"noopener\">Reuters<\/a>, although this was never confirmed \u2014 did not lead to an agreement to rescue the company.<\/p>\n<p>After the termination of talks was announced, one analyst said the bankruptcy was coming sooner or later. \u201cI can\u2019t put it if it is next week or next year, but it is inevitable,\u201d <a href=\"https:\/\/www.reuters.com\/business\/autos-transportation\/ev-startup-fiskers-deal-talks-with-large-automaker-ends-2024-03-25\/\" target=\"_blank\" rel=\"noopener\">said<\/a> Thomas Hays, chairman of the hedge fund Great Hill Capital.<\/p>\n<p>In addition, the company\u2019s eponymous founder cited problems in the <a href=\"https:\/\/www.westernjournal.com\/biden-considers-giving-struggling-us-electric-vehicle-market-yet-another-big-leg\/\" target=\"_blank\" rel=\"noopener\">ultra-competitive EV market<\/a>, especially for startups.<\/p>\n<p>\u201cLike other companies in the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-promotes-proterra-on-wisconsin-infrastructure-trip\/\" title=\"Biden Promotes Proterra on Wisconsin Infrastructure Trip\">electric vehicle industry<\/a>, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently,\u201d Fisker said. \u201cAfter evaluating all options for our business, we determined that proceeding with a sale of our assets under Chapter 11 is the most viable path forward for the company.\u201d<\/p>\n<p>Reuters added that EV startups Proterra, Lordstown and Electric Last Mile Solutions also filed for bankruptcy over the past two years.<\/p>\n<p>Less discussed in talk of the bankruptcy filing, however, was the nature of the Fisker Ocean itself \u2014 a vehicle so flawed that one prominent YouTuber who test-drives EVs bluntly titled his review video with the crossover thusly: \u201cThis is the Worst Car I\u2019ve Ever Reviewed.\u201d<\/p>\n<p> <iframe loading=\"lazy\" title=\"This is the Worst Car I've Ever Reviewed\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/6xWXRk3yaSw?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>Consumer Reports was also <a href=\"https:\/\/www.westernjournal.com\/massively-hyped-tesla-rival-ev-gets-blistering-report-consumer-reports-nauseating-unfinished-buggy\/\" target=\"_blank\" rel=\"noopener\">less than enthusiastic about the Ocean<\/a>, which was billed as a full-featured EV crossover for under $40,000.<\/p>\n<p>While the organization\u2019s Keith Barry wrote in an April review that \u201cthe concept looked good on paper \u2014 an all-electric compact SUV with 360 miles of range and a starting price of $38,900,\u201d he said the car was \u201cunfinished,\u201d \u201cbuggy\u201d and gave drivers a \u201cnauseating\u201d sensation while driving due to the vibrations from the regenerative braking system.<\/p>\n<p>In addition, promised <a href=\"https:\/\/www.westernjournal.com\/ap-tesla-recalls-nearly-every-vehicle-sold-us\/\" target=\"_blank\" rel=\"noopener\">safety features<\/a> either didn\u2019t work or only worked intermittently \u2014 which, if you think about it, is just as much of an issue as safety features that don\u2019t work at all.<\/p>\n<p>\u201cIt\u2019s inexcusable that safety and other features promised on the Ocean\u2019s window sticker come and go, with their absences only occasionally accompanied by warning messages,\u201d Consumer Reports said.<\/p>\n<p>In addition to the safety issues, reviewers said the interior \u201cfeels like a cheap polyester suit\u201d and the suspension, while unduly soft, still allowed stiff bumps to \u201cpunch into the cabin.\u201d<\/p>\n<p> <iframe loading=\"lazy\" title=\"2023 Fisker Ocean Early Review | Consumer Reports\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/BFeSbq9koQI?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>As previously noted, this was the <em>second<\/em> attempt at an EV marque by the Danish-born Fisker. The first iteration of Fisker Automotive sought to challenge then-startup Tesla, mostly known for its Roadster sports car, with a sports car of its own, the Fisker Karma.<\/p>\n<blockquote>\n<p dir=\"ltr\" lang=\"en\">Hyde Park in the Fisker Karma this afternoon ..a rare opp,very fast and very electric! <a href=\"http:\/\/t.co\/ezwiNdGG\">pic.twitter.com\/ezwiNdGG<\/a><\/p>\n<p>\u2014 H.R. Owen Bentley (@HROwenBentley) <a href=\"https:\/\/twitter.com\/HROwenBentley\/status\/280772421047447553?\">December 17, 2012<\/a><\/p>\n<\/blockquote>\n<p>Probably the best illustration of why that company filed for bankruptcy in 2013 can be summed up by a <a href=\"https:\/\/www.businessinsider.com\/spotted-here-is-a-fisker-karma-that-isnt-broken-down-2012-3\" target=\"_blank\" rel=\"noopener\">Business Insider<\/a> headline from a year prior: \u201cSPOTTED: Here Is a Fisker Karma That Isn\u2019t Broken Down.\u201d A rare sight, indeed.<\/p>\n<p>Fisker produced <a href=\"https:\/\/www.westernjournal.com\/elon-musks-tesla-rival-henrik-fisker-quits-twitter-takeover-heads-zuckerbergs-instagram\/\" target=\"_blank\" rel=\"noopener\">just over 2,400 Karmas<\/a>; one notable owner was Hunter Biden, who would go on to trade in the $142,000 sports car for a more sensible Porsche. It was probably the <a href=\"https:\/\/www.westernjournal.com\/massively-hyped-tesla-rival-ev-gets-blistering-report-consumer-reports-nauseating-unfinished-buggy\/\" target=\"_blank\" rel=\"noopener\">smartest decision<\/a> the future first son made during that period of his life, from all available evidence.<\/p>\n<div id=\"firefly-poll-container\">\n<p>Have you ever considered buying an electric vehicle?<\/p>\n<\/p><\/div>\n<p>As for the Ocean, which was designed to be more of a mass-market vehicle, the company delivered only half of the 10,000 vehicles it produced last year \u2014 some with discounts of up to $24,000, according to <a href=\"https:\/\/www.autoweek.com\/news\/a60331466\/fisker-ocean-discount-prices\/\" target=\"_blank\" rel=\"noopener\">Autoweek<\/a>, due to the desperation caused by the company\u2019s cash flow problems.<\/p>\n<p>It\u2019s not like it should have had these problems, either; as Reuters noted, \u201cFisker went public in late 2020 in a merger with a blank-check firm, valuing it at $2.9 billion and infusing its balance sheet with more than $1 billion in cash.\u201d<\/p>\n<p>For all we know, Fisker resurrects itself and starts fixing the problems with the Ocean with some miraculous infusion of cash. Weirder things have happened; consider that financiers gave Henrik Fisker another chance at running an EV startup after the failure of the Karma.<\/p>\n<p>However, Monday\u2019s filing is more evidence of the problem with <a href=\"https:\/\/www.westernjournal.com\/mercedes-pushes-back-going-electric-cold-hard-truth-kneecaps-plan\/\" target=\"_blank\" rel=\"noopener\">EVs in general<\/a> and <a href=\"https:\/\/www.westernjournal.com\/amazon-backed-ev-maker-sees-stock-price-plummet-amid-rough-quarterly-report-mass-layoffs\/\" target=\"_blank\" rel=\"noopener\">EV startups in particular<\/a>: Despite no real evidence that these vehicles are catching on beyond a niche clientele who want to virtue-signal about their environmental bona fides, with the possible exception of Tesla, investors and corporate boards continue to throw money at <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/where-electric-vehicle-projects-from-the-infrastructure-investment-and-jobs-act-stand\/\" title=\"Status of electric vehicle projects in the Infrastructure Investment and Jobs Act.\">electric vehicle projects<\/a> that sound too good to be true \u2014 because they are.<\/p>\n<p>Simply judging from the stats alone, the Fisker Ocean looked great on paper. Cars, alas, are not driven on paper.<\/p>\n<p>Bankruptcies are filed on them, however \u2014 and Fisker won\u2019t be the last EV startup to take this ignominious route.<\/p>\n<p>Heck, it might not even be the last company called Fisker to do it.<\/p>\n<hr>\n<div>\n<p><b><i>An Important Message from Our Staff:<\/i><\/b><\/p>\n<p><i><span>In just a few months, the world is going to change forever. The 2024 election is the single most important election of our lifetime. <\/span><\/i><\/p>\n<p><i><span>We here at The Western Journal are committed to covering it in a way the establishment media simply will not: We will tell the truth, and they will lie.<\/span><\/i><\/p>\n<p><i><span>But Big Tech and the elites don\u2019t want the truth out. That\u2019s why they have cut us off from 90% of advertisers. Imagine if someone cut your monthly income by 90%. That\u2019s what they\u2019ve done to people like us. <\/span><\/i><\/p>\n<p><i><span>As a staff, we are asking you to <\/span><\/i><a href=\"https:\/\/www.westernjournal.com\/subscribe\/?utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>join us<\/span><\/i><\/a><i><span>  to fight this once-in-a-lifetime fight. Without you not only will The Western Journal fail, but America will fail also. As Benjamin Franklin said, \u201cWe must all hang together, or assuredly we shall all hang separately.\u201d<\/span><\/i><\/p>\n<p><i><span>Will you support The Western Journal today and <\/span><\/i><a href=\"https:\/\/www.westernjournal.com\/subscribe\/?utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>become a member<\/span><\/i><\/a><i><span>? <\/span><\/i><\/p>\n<p><i><span>A Western Journal <\/span><\/i><a href=\"https:\/\/www.westernjournal.com\/subscribe\/?utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>Membership<\/span><\/i><\/a><i><span>  costs less than one coffee and breakfast sandwich each month, and it gets you access to ALL of our content \u2014 news, commentary, and premium articles. You\u2019ll experience a radically reduced number of ads, and most importantly you will be vitally supporting the fight for America\u2019s soul in 2024.<\/span><\/i><\/p>\n<p><i><span>This is the time. America will live or die based on what happens this year. Please <\/span><\/i><a href=\"https:\/\/www.westernjournal.com\/subscribe\/?utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>join us<\/span><\/i><\/a><i><span>  to get the real truth out and to fight the elites, Big Tech, and the people who want America to fail. Together, we really can save the country.<\/span><\/i><\/p>\n<p><b><i>Thank you for your support!<\/i><\/b><\/p>\n<p><i><span>P.S. <\/span><\/i><a href=\"https:\/\/www.westernjournal.com\/subscribe\/?utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>Please stand with us<\/span><\/i><\/a><i><span>!<\/span><\/i><\/p>\n<\/p><\/div>\n<div id=\"author-info-44670\">\n<p><a href=\"https:\/\/www.westernjournal.com\/author\/cillianzeal\/\">  <\/a> <\/p>\n<div>\n<p><label for=\"summary-tab-radio-44670\">Summary<\/label><label for=\"more-info-tab-radio-44670\">More<span> Biographical Information<\/span><\/label><label for=\"posts-tab-radio-44670\">Recent<span> Posts<\/span><\/label><label for=\"contact-tab-radio-44670\" onclick=\"if( typeof grecaptcha=='undefined' ) { let cap_s=document.createElement( 'script' ); cap_s.src='https:\/\/www.google.com\/recaptcha\/api.js?render=6LeJFcsUAAAAAPsIEqvB1EebWbZfqRUe6ebMpGy7'; document.body.appendChild( cap_s ); }\">Contact<\/label><\/p>\n<div>\n<p>C. Douglas Golden is a writer who splits his time between the United States and Southeast Asia. Specializing in political commentary and world affairs, he&#8217;s written for Conservative Tribune and The Western Journal since 2014.<\/p>\n<\/p><\/div>\n<div>\n<p>  C. Douglas Golden is a writer who splits his time between the United States and Southeast Asia. Specializing in political commentary and world affairs, he&#8217;s written for Conservative Tribune and The Western Journal since 2014. Aside from politics, he enjoys spending time with his wife, literature (especially British comic novels and modern Japanese lit), indie rock, coffee, Formula One and football (of both American and world varieties). <\/p>\n<p>  Birthplace <\/p>\n<p>  Morristown, New Jersey <\/p>\n<p>  Education <\/p>\n<p>  Catholic University of America <\/p>\n<p>  Languages Spoken <\/p>\n<p>  English, Spanish <\/p>\n<p>  Topics of Expertise <\/p>\n<p>  American Politics, World Politics, Culture <\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Commentary by C. Douglas Golden, June 19, 2024: Henrik Fisker&#8217;s electric vehicle company has declared bankruptcy once more. For those familiar with the automotive sector, this development from the entrepreneur and former BMW designer, leading his second hyped-up EV startup, was hardly unexpected<\/p>\n","protected":false},"author":663,"featured_media":2271462,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/06\/Fisker-Ocean.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-2271461","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/06\/Fisker-Ocean.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2271461","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/663"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2271461"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2271461\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2271462"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2271461"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2271461"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2271461"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}