Electric vehicle maker Fisker has filed for Chapter 11 bankruptcy protection, the second electric startup to do so in the last year as even industry leaders struggle to lure more buyers beyond the early adapters of the technology.
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Fisker Group Inc said in a filing with the US Bankruptcy Court in Delaware that its estimated assets are between $US500 million and $US1 billion ($A752 million and $A1.5 billion).
It estimated liabilities are between $US100 million and $US500 million, with between 200 and 999 creditors.
"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 company said in a statement.
"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."
The seven-year-old electric car company was founded by designer Henrik Fisker, who has been its chairman and CEO.
He designed the company's 2022 Ocean all electric SUV as well as the luxury plug-in hybrid Karma that was launched in 2011.
Fisker is also known for leading the development of the BMW Z8 sports car.
It is the second car venture led by Henrik Fisker to fail.
Fisker, based in Manhattan Beach, California, and other startups like Lordstown Motors Corp, sought to take on industry leaders like Tesla, and big car makers in Detroit, which have entered the market aggressively.
However, EV sales have slowed as manufacturers have attempted to push electric vehicles into the mainstream.
Those sales have been curbed both by a lack of infrastructure as well as rising inflation that have made taking on car loans more expensive.
Electric vehicles grew only 3.3 per cent to nearly 270,000 during the first three months of this year, far below the 47 per cent growth that fuelled record sales and a 7.6 per cent market share last year, according to JD Power.
The slowdown, led by Tesla, confirms car makers' fears that they moved too quickly to pursue EV buyers.
The EV share of total US sales fell to 7.15 per cent in the first quarter.
That has led to huge price cuts and job cuts at leading companies like Tesla.
Another electric startup, Rivian, said this year that it was pausing construction of its $US5 billion manufacturing plant in the US state of Georgia to speed production and save money.
Henrik Fisker's first attempt to start an electric car company came to an end in 2013 in bankruptcy.
That collapse culminated a long downward spiral that began after Fisker received a $US529 million loan commitment from the US Department of Energy.
it was later learned that the US Energy Department did not realise for four months that the flailing company, called Fisker Automotive Inc, had missed a crucial production target that was required as part of a half-billion US dollar government loan.
The mistake allowed Fisker to obtain an additional $US32 million in US government finding before the loan was suspended in June 2011.
Fisker Inc and other US subsidiaries, along with subsidiaries outside the United States, are not currently included in the bankruptcy filing.
Fisker says that it is in advanced talks with financial stakeholders about debtor-in-possession financing and selling its assets.
Australian Associated Press
