Marques Brownlee, the prominent tech YouTuber known as MKBHD, expressed his disappointment over the bankruptcy of Fisker Inc., underlining the need for more competition in the electric vehicle sector.
What Happened: Brownlee took to X to share his thoughts on Fisker's bankruptcy. He acknowledged the necessity of increased competition in the EV industry but lamented that Fisker failed to survive in this competitive landscape.
"RIP I know everyone's commenting that I killed them, but truth is they were doomed long before any of my videos. It's sad news because we (always) need more competition in the EV space. But this one never made it over the hill," MKBHD wrote.
RIP
— Marques Brownlee (@MKBHD) June 18, 2024
I know everyone's commenting that I killed them, but truth is they were doomed long before any of my videos.
It's sad news because we (always) need more competition in the EV space. But this one never made it over the hill
The YouTuber's post responded to a tweet by Sawyer Merritt, a prominent Tesla Inc. investor, who announced Fisker's bankruptcy filing.
Why It Matters: Fisker, a California-based EV manufacturer, filed for Chapter 11 bankruptcy on Tuesday. The company's estimated assets range from $500 million to $1 billion, with liabilities in the $100 million to $500 million range.
Fisker had warned in February that it might not have enough funds to operate through the year. The company's shares were delisted from the New York Stock Exchange the following month due to low share prices, and potential investment talks with a major automaker collapsed, leaving Fisker's financial future uncertain.
Before this, Fisker's Austrian unit had filed for bankruptcy protection in May, stating that no other entities of Fisker were included in the restructuring.
The troubled EV maker continued to struggle with its financial issues, and the U.S. auto safety regulator had also launched an investigation into the company's 2023 Ocean SUVs over the unintended activation of its automatic emergency braking system.
Amid fears of impending bankruptcy, Fisker had initiated a new round of layoffs to preserve cash. The company's CEO, Henrik Fisker, informed employees of the decision in an internal email, stating that the company was "continuing to evaluate all viable options for our business, including a potential transaction, and we are committed to identifying potential buyers and pathways to infuse capital into the business."
Image Via Shutterstock
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote