Additional financing and the transferring of executives could not save Fisker and the fact that consumers are reluctant to purchase electric vehicles (EV). With a $104,000 price tag, the Fisker Karma lost out to other auto makers like Ford and Nissan who offer a more affordable EV. At the 2012 New York auto show, Fisker unveiled a smaller, less expensive concept model it hoped to build in an abandoned G.M. plant in Delaware, but production never started because of lack of funds.

On April 24 Fisker and the US Department of Energy were questioned during a Congressional hearing for unpaid bills, missed production targets and other deadlines. The company’s skipped loan payment, has forced the federal government to take steps in seizing $21 million from the company’s cash reserves as a first step to recouping the $192 million in taxpayer dollars.

In recent months, Fisker has unsuccessfully negotiated with two Chinese automobile manufacturers to sell the company, but lack of interest shows that bankruptcy is unavoidable. The demise of Fisker has environmental activists worrying about the potential ramifications of Fisker’s bankruptcy and Fisker Karma owners are questioning whether there will be a company to service their EV. Fisker was forced to lay off approximately 160 employees without severance benefits. The loan to Fisker was one of 33 clean energy loans that did not prove successful.