U.S. electric-vehicle (EV) maker Fisker filed for bankruptcy Tuesday.
The California-based electric car company unveiled its Ocean line of cars in 2021, which included a solar roof, a rotating touchscreen console and the ability to power an owner’s home in an emergency.
In a memo Tuesday, Fisker, the subsidiary of Fisker Inc., said it was in discussions with stakeholders regarding “debtor-in-possession and the sale of its assets.”
“Fisker has made incredible progress since our founding, bringing the Ocean SUV to market twice as fast as expected in the auto industry and making good on our promises to deliver the most sustainable vehicle in the world,” a Fisker spokesperson said in a statement.
The company said it is proud of its achievements, but like others, Fisker has faced issues as demand has slowed.
“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 statement said.
The EV company highlighted in February its worries about staying in business and later did not secure an investment from a larger automaker, which is alleged to have been Nissan, Reuters reported.
The spokesperson said the company evaluated all its options and determined that the sale of its assets under Chapter 11 is “the most viable path forward for the company.”
CNN noted that the company’s founder and CEO, Henrik Fisker, admitted the cars had quality problems from using software from different suppliers.
The EV company is the latest among a group of struggling electric vehicle startups looking to capitalize on the market’s excitement for a green vehicle. Lordstown Motors and bus maker Arrival both filed for bankruptcy protection and others are cutting costs, the Wall Street Journal reported.
This year, EV sales grew only 3.3 percent compared to 47 percent last year, The Associated Press reported.