Fisker, the electric vehicle startup founded by Henrik Fisker, has filed for Chapter 11 bankruptcy protection, marking a tumultuous period for the company. The move comes after a series of production woes, software problems, and financial distress that have plagued the automaker since the launch of its Ocean SUV in 2023.

The company's troubles began to surface in 2023, when it fell short of its production targets, failed to meet sales goals, and laid off staff. The Ocean SUV, which was supposed to be the flagship model, was beset with software and mechanical issues, leading to multiple safety investigations and a pause in production. The company's financial situation deteriorated further, with a significant decline in cash reserves and a substantial doubt about its ability to continue operations without raising new capital.

In the months leading up to the bankruptcy filing, Fisker struggled to stay afloat, with a series of layoffs, production halts, and failed deals with other automakers. The company's financial distress was exacerbated by its inability to keep track of customer payments, leading to an internal audit that took months to complete. In a few cases, vehicles were delivered without collecting payment, further complicating the company's financial situation.

The bankruptcy filing estimates Fisker's assets to be between $500 million and $1 billion, with liabilities ranging from $100 million to $500 million. The company will continue to operate on a reduced scale, with plans to sell its remaining inventory and preserve customer programs. However, the future of the company remains uncertain, with the fight over its assets already heating up.

The bankruptcy proceedings have also raised questions about the handling of outstanding recalls, with Fisker initially suggesting that owners would have to pay for labor costs. However, the company later reversed its decision, agreeing to cover the costs of parts and labor. The U.S. Securities and Exchange Commission has also opened an investigation into Fisker, citing potential violations of federal securities laws.

The demise of Fisker serves as a cautionary tale for the electric vehicle industry, highlighting the challenges of scaling up production and managing complex software and mechanical systems. As the company navigates the bankruptcy process, its fate remains uncertain, leaving customers, investors, and industry observers wondering what's next for the beleaguered automaker.