Danish EV firm Fisker seeks bankruptcy protection

Fisker, the Danish-led electric vehicle (EV) firm, has filed for chapter 11 bankruptcy protection in the U.S. to avoid collapse and resolve financial issues away from creditors’ reach. Negotiations for a partnership with another automaker failed, leading to this move. The company had been struggling financially, suspending investments, and warning of cash shortages. In 2023, it reported sales of $273 million against a debt exceeding $1 billion. Safety concerns regarding Fisker’s vehicles also prompted a government investigation. There were rumors of Nissan considering an investment, but no confirmation has been given. Henrik Fisker founded the company in 2016, which was once seen as a competitor to Tesla. In 2020, Fisker’s peak market value was $7.9 billion. However, issues led to a trading suspension of Fisker’s shares on the New York Stock Exchange.