The electric vehicle industry is in turmoil after much fanfare from Democrats and their media allies.
Now a major shake-up is underway that will change everything.
And an electric vehicle darling handed Joe Biden some bad news that confirmed his worst fears.
Electric vehicle maker Fisker files for bankruptcy
Every electric vehicle startup is trying to become the next Tesla.
But not even the world’s oldest, most established and successful automakers have even come close to matching the success of Elon Musk’s company.
Electric vehicle startup Fisker was touted by some as a potential competitor to Tesla.
The company’s founder, Henrik Fisker, served as a design consultant for Tesla before branching out on his own.
Fisker said that he wanted his company to be the Apple of the auto industry when the company went public in 2020.
The company bet big on the hope that President Joe Biden would create an electric vehicle boom through taxpayer-funded subsidies and tax credits.
Fisker produced 10,000 Ocean SUVs in 2023, but only delivered 4,700 vehicles worldwide.
And over the past year, Fisker has been in a total free fall with production of its flagship vehicle, the Fisker Ocean SUV, halted.
The National Highway Traffic Safety Administration (NHTSA) opened three separate investigations into the Ocean.
The EV had problems with suddenly losing power, braking, the doors not opening, and problems with the onboard software.
A fourth NHTSA investigation is underway for “inadvertent Automatic Emergency Braking.”
The Ocean’s automatic braking began to randomly kick in for no reason, according to complaints.
“The braking applications range from momentary, partial application resulting in rapid loss of speed to full application, which brings the vehicle to a complete stop in the travel lane,” the NHTSA wrote in a report.
Now, Fisker has been forced to file for Chapter 11 bankruptcy in a Delaware court after failing to find outside investment to save the company.
The company is planning to sell off assets and begin restricting its debt.
Fisker is the latest EV maker to fail
The electric vehicle industry is in turmoil with demand for them collapsing.
Fisker cited the economic and market headwinds for hampering the company in a statement after it filed for bankruptcy.
“We are proud of our achievements, and we have put thousands of Fisker Ocean SUVs in customers’ hands in both North America and Europe. But 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 spokesman said in a statement.
Low interests made cheap money available for companies like Fisker to borrow.
But sky-high inflation and interest rates coupled with a dumpster fire of an economy under Biden’s watch are making it harder for companies to find capital, especially such risky startups.
Without an outside investor or the ability to borrow more money, the EV manufacturer was left with no choice but to file for bankruptcy.
“After 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,” Fisker added.
Fisker joins Proterra, Lordstown, and Electric Last Mile Solutions as EV makers to file bankruptcy over the last two years.
The electric vehicle market is in turmoil and there doesn’t appear to be a light at the end of the tunnel.
US Political Daily will keep you updated on any developments to this ongoing story.
