Fisker is preparing for a possible bankruptcy filing, according to a new report from The Wall Street Journal. The news comes after Fisker told investors about its “substantial doubt” that it could meet all of its financial obligations without a cash infusion.
The troubled EV startup founded by Henrik Fisker has hired bankruptcy advisors to assist in a potential filing, according to the WSJ. The company has produced—err, its supplier Magna has produced—around 10,000 of its Ocean electric crossovers. It has sold around half of them. The product launched at a time of slackening demand for EVs last summer, and has had multiple high-profile issues and recalls.
The company has a billion dollars of debt as of its last filing, meaning it will take a lot of Ocean sales to dig out of that hole. It has also said that it won’t be able to develop new products without the help of a major automaker. Its partner Magna, the contract production company that builds the Ocean along with other products for legacy OEMs like Mercedes, lists business with Fisker as one of its financial risks.
InsideEVs has reached out to Fisker for comment. We have not heard back.
