The startup electric car company Fisker said this week that it is halting the production of its vehicles to raise $150 million in emergency funds as it grapples with a cash crunch spurred by a low demand for electric vehicles.
The California-based company, which says its mission is to “create the world’s most emotional and sustainable electric vehicles,” has barely produced over a thousand electric vehicles worldwide for the year.
“The company has approximately 4,700 vehicles in its currently inventory, carried over from 2023 and including 2024 production,” the company said. “While it has not completed an NRV analysis for 2024, Fisker believes the completed vehicle value for its inventory as of March 15, 2024, is in excess of $200 million.”
“Fisker will pause production for six weeks starting the week of March 18, 2024, to align inventory levels and progress strategic and financing initiatives,” it added.
Reuters reported last month that signals from the car company indicated that there was “substantial doubt about its ability to continue” due to the financial health of the company.
The Wall Street Journal reported last week that the company hired outside help to assist with a possible bankruptcy filing.
The company’s struggles comes as the Biden administration announced on Wednesday that it would continue its efforts to destroy the gas-powered car industry by implementing the most extreme pollution restrictions in history on automakers.
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The Washington Post, which called the effort “controversial,” noted that the rule will force automakers “to ramp up sales of electric vehicles while slashing carbon emissions from gasoline-powered models.”
The Environmental Protection Agency (EPA) claimed that its national pollution standard, which could end up getting killed in the courts, would prevent more than 7 billion tons of carbon emissions, which it claimed would provide $100 billion in annual benefits to the U.S.
The announcement was met with swift backlash online across the political Right, who warned that Biden’s agenda would damage the American car industry.
“Biden’s latest ban on gas-powered vehicles and replacement with electric vehicles is another direct assault on consumer choice and the American way of life,” said Sen. Ted Cruz (R-TX). “It ignores the needs of American families in order to appease the radical environmental lobby at the expense of millions of jobs supported by the automotive industry. It’s time to put an end to this regulatory overreach.”