Another EV Company Bites the Dust…

Another EV Company Bites the Dust…

June 19, 2024

This week, it was reported that electric vehicle (EV) producer Fisker has filed for Chapter 11 bankruptcy. This comes just a year after the company launched its first vehicle.

The Wall Street Journal Editorial Board writes, 

“Fisker Group declared bankruptcy late Monday, the second U.S. electric-vehicle startup to fail in a year. Building a new car company isn’t easy, but Fisker ironically may have been harmed by President Biden’s force-fed EV transition. The seven-year-old company was Henrik Fisker’s second-go. His previous EV startup, Fisker Automotive, failed in 2013 after burning through some $1.4 billion, including a $192 million U.S. government loan. Problems at a battery supplier were a major culprit. This time Fisker struggled to scale up and compete in a more developed—and saturated—EV market.”

This shows the EV market is continuing a downward spiral as even well-known automakers are not making money off EVs,

“Traditional auto makers are also pumping tens of billions of dollars into EVs to comply with government mandates, which they subsidize with profits from gas-powered cars. Fisker can’t cross-subsidize its EVs. In March it slashed prices by some 40%, but its growing losses were unsustainable. It lost about $150,000 per vehicle delivered last year.”

Despite being propped up with government subsidies and mandates, the EV market continues to crumble. The Biden administration must wake up and see that American families are uninterested in expensive and unreliable electric vehicles.