US electric car maker Fisker has filed for bankruptcy, citing inflation and production problems.
Fisker is in “advanced discussions with financial stakeholders” about selling its assets, according to a company statement announcing the bankruptcy, which was released overnight into Tuesday.

“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 statement read

Fisker has been struggling financially for months and has already ceased production of its Ocean model, which was introduced in 2022.

The company was valued at $2.9 billion when it went public in 2020 as a result of a merger with a unit of Apollo Investments.

In February, founder Henrik Fisker predicted a tough 2023, with parts delays, employment concerns, and high inflation hitting demand.

US carmakers face stiff competition from Chinese manufacturers, with US leader Tesla announcing more than 14,000 job cuts in April.

Fisker’s financial difficulties were exacerbated by the need to significantly reduce the price of its vehicles in order to generate sales and clear stock.

Some variants of the Ocean SUV were originally priced at around $70,000, but as the company descended into bankruptcy, the most affordable variant was slashed to around $25,000.

The company now wants to sell under 3,300 Ocean electric SUVs to American Leasing a company that provides vehicles to New York City’s thousands of Uber and Lyft drivers.

The vehicles to be purchased by American Leasing would be sold as is, Fisker said, with some in good condition and others in need of repair.

The deal is valued at up to $46.25 million, an executive said in a court filing, plus certain other incidental costs.