Fisker Inc., the electric vehicle startup known for its Ocean SUV, has received court approval for its bankruptcy liquidation plan. This approval comes after a last-minute agreement with American Lease LLC, the company purchasing Fisker's remaining vehicle inventory. The deal ensures that Fisker's Ocean EVs will remain connected to essential tech support services, a critical concern for current owners.

Fisker filed for bankruptcy in June 2024 after failing to secure a partnership with Nissan for vehicle production. The company faced severe cash flow issues, leading to halted production and layoffs. The bankruptcy plan, approved by U.S. Bankruptcy Judge Thomas Horan, allows Fisker to liquidate its assets, including the sale of over 3,000 Ocean SUVs to American Lease for $46.25 million.

A significant hurdle in the liquidation process was the transfer of essential data and support services to American Lease's servers. Without this, Ocean owners would lose access to software updates and diagnostic data. The issue was resolved with American Lease agreeing to pay an additional $2.5 million over five years for tech support, benefiting all Ocean owners.

The bankruptcy plan also addresses concerns from the National Highway Transportation Safety Board regarding recall costs, which Fisker's estate will cover. Despite the plan's approval, Fisker's shareholders will not receive compensation, as the company's assets are prioritized for creditors.

Fisker's downfall is part of a broader trend in the EV market, with several companies like Proterra and Lordstown also filing for bankruptcy due to market challenges. Fisker's case is further complicated by an ongoing SEC investigation into potential securities violations.

Founded in 2016, Fisker went public in 2020 but struggled to compete with established players like Tesla. The company's ambitious plans were marred by production issues and financial mismanagement, leading to its eventual bankruptcy.