Fisker, the company behind the Pear EV that is being manufactured in Lordstown has filed for Chapter 11 bankruptcy 

CNBC reports the Califonia-based EV manufacturer filed for bankruptcy late Monday following "rapid cash burn" to deliver its Ocean SUVs.

“This is pretty much the end of Fisker as a car company,” John McElroy of Autoline said. “We knew this was coming, it's no surprise at all.”

According to a press release, Fisker is in advanced discussions with financial stakeholders regarding debtor in-possession financing and the sale of its assets.

Fisker lists its assets between $500 million and $1 billion and its liabilities are between $100 million and $500 million.

"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," an unnamed Fisker spokesperson said in the release.

This comes just months after Fisker announced a pause on production including a halt on manufacturing its Pear EV in Lordstown. Originally, production was supposed to begin in Lordstown in July of 2025.

When that pause was announced Fisker said its current resources may not be sufficient enough to survive the next year without additional equity or debt financing. According to the release, that pause will remain in place.

“I think the Pear being built by Foxconn in Lordstown is just not going to happen,” McElroy said. “It takes a lot of money to launch a product, Fisker clearly doesn't have the money.”

The Lordstown Foxconn has been considered for several other manufacturing products over the years including a INDI One Prototype Vehicle and the Lordstown Endurance Truck. Many have ended up not being produced, like the Pear EV, because they didn’t reach a full contractual agreement.

“I think the fact that these contracts with Foxconn are falling through are really not Foxconn's fault,” McElroy said. “The problem that they’ve got is they've been working with companies that are not well capitalized and when they run out of money that's pretty much it.”

McElroy suggested Foxconn should start looking at more established companies to see if they can manufacture products for them to earn success.

In the meantime, Fisker plans to file certain customary motions with the bankruptcy court to ensure its reduced operations are able to continue including paying employee wages and benefits, preserving certain customer programs and compensating needed vendors on a go-forward basis. 

RELATED COVERAGE: