, Columnist
How to Avoid a Crash in Your New Electric Car
Weak automaker balance sheets are a good reason to lease your next drive.
Modern autos rely on software as much as hardware.
Photographer: Gianluca Colla/Bloomberg
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Fisker Inc.’s warning that it may run out of cash within 12 months absent fresh equity or debt raises a new and worrying question for car owners: What happens if the maker of your electric vehicle goes bust? Modern cars are highly sophisticated computers on wheels, reliant on expensive batteries and regular software updates to function properly.
Consumers should extend their pre-purchase homework to include an assessment of the financial health of the manufacturer and, if in doubt, consider leasing rather than buying that expensive new ride.