Electric vehicle manufacturer Fisker has been forced to lay off hundreds of employees in the face of significant financial difficulties. The automaker, grappling with dire financial circumstances, is urgently seeking funding or a potential buyout to avoid the looming threat of bankruptcy.

The company’s financial instability has led to drastic measures, including mass layoffs that have slashed the workforce to just 150 employees. Founder and CEO Henrik Fisker informed investors that a major creditor and its chief restructuring officer had demanded these layoffs. Earlier this year, Fisker already reduced its staff by 15 percent. As of mid-April, the company employed approximately 1,135 people. Despite the grim situation, Fisker assured that the laid-off workers would be rehired once the company stabilizes.

The American Tribune has consistently reported on the mounting challenges facing the electric vehicle (EV) industry. Many producers are encountering significant headwinds, with consumer interest waning. Another EV maker, Lucid, recently announced extensive layoffs as part of a cost-cutting initiative.

According to a filing with the Securities and Exchange Commission (SEC) last month, Lucid will reduce its workforce by 6 percent, or about 400 employees, by the third quarter of this year. This reduction will impact both management and general staff. The filing stated, “On May 24, 2024, Lucid Group, Inc. announced a restructuring plan intended to optimize the company’s operating expenses in response to evolving business needs and productivity improvements through a reduction of the company’s current employee workforce by approximately 400 employees, or approximately 6%. The company expects to substantially complete the plan by the end of the third quarter of 2024, subject to local law and consultation requirements.”

Luxury automaker Mercedes-Benz is also reevaluating its EV strategy to better match consumer preferences. The company had ambitiously aimed to be all-electric by 2030. However, CEO Ola Källenius recently informed investors that this transition would take longer than initially anticipated. “Customers and market conditions will set the pace of the transformation,” the company stated. “The company plans to be in a position to cater to different customer needs, whether it’s an all-electric drivetrain or an electrified combustion engine, until well into the 2030s.”

As consumer interest in EVs waned last year, pushback has emerged further down the supply chain. Thousands of car dealers across the country wrote an open letter to President Biden, urging a reassessment of his administration’s aggressive EV agenda due to faltering demand for these vehicles.

The letter read in part, “Mr. President, it is time to tap the brakes on the unrealistic government electric vehicle mandate. Allow time for the battery technology to advance. Allow time to make BEVs more affordable. Allow time to develop domestic sources for the minerals to make batteries. Allow time for the charging infrastructure to be built and prove reliable. And most of all, allow time for the American consumer to get comfortable with the technology and make the choice to buy an electric vehicle.”

This appeal underscores the broader challenges within the EV sector. Companies are not only battling financial difficulties but are also grappling with the realities of market readiness and consumer acceptance. As Fisker, Lucid, and Mercedes-Benz navigate these turbulent waters, the future of the EV market hangs in a delicate balance, influenced by technological advancements, consumer preferences, and regulatory landscapes.