Henrik Fisker had high hopes for the EV kingdom he sought to establish with his self-titled startup, focusing on the Ocean SUV as its flagship. However, trouble began surfacing with the release of the Ocean in 2023.
The company saw itself revising production forecasts down multiple times, missing sales objectives, and reducing its workforce. Furthermore, the Ocean SUV encountered a plethora of software and mechanical issues, leaving some units unusable. The list of problems extended to unreliable brakes, abrupt power outages, and non-opening doors, which instigated several safety inquiries and eventually led to a temporary cessation in production to gather additional funds.
These accumulating challenges drove Fisker to seek Chapter 11 bankruptcy protection, signaling a troubling phase for the startup. Here’s a recap of the journey leading to this point.
2023
Fisker didn’t meet its Q2 production expectations
July 7 — In the second quarter of 2023, the company manufactured 1,022 Ocean SUVs, missing its anticipated production range of 1,400 to 1,700 EVs.
Fisker raised funds through convertible debt sales
July 10 — To support its operations and future growth, including the addition of a new battery pack line slated for 2024, Fisker put forth $340 million in convertible bonds, anticipating $296.7 million in net proceeds.
Downward revision of production goals
December 1 — In a move to unlock $300 million in working capital, Fisker revised its yearly production goal down, now aiming to assemble about 10,000 vehicles in 2023, a significant cut from its optimistic forecast a year prior.
2024
Fisker’s struggle with meeting sales targets
January 1 — Falling short of its ambitious goal to deliver 300 electric SUVs daily worldwide, Fisker mostly could not reach an internal sales aim of 100 to 200 vehicles a day in North America during December, often managing to sell only a few dozen Oceans daily.
Investigations into Ocean SUV’s braking issues
January 15 — Complaints about the braking systems and other issues led federal safety regulators to open an investigation into Fisker’s inaugural electric vehicle.
Recurring power and brake problems reported by owners
February 9 — Customer reports of over 100 power loss incidents with the Ocean SUVs have been acknowledged by Fisker, which conveyed to TechCrunch that these issues were isolated and mostly resolved through software updates.
Second federal probe after rollaway incidents
February 16 — Following four reports of unexpected rollaway, the NHTSA initiated another investigation into the Ocean SUV.
Workforce reduction by 15%
February 29 — With its financial runway shortening, Fisker announced a 15% staff layoff and admitted to potentially not having sufficient funds to sustain over the next year.
Production halt with limited funds
March 18 — Fisker paused Ocean SUV production for six weeks amid efforts to secure additional financing, having just $121 million on hand, some of which was restricted.
Termination of deal negotiations
March 25 — A key negotiation with a major automaker, hinted to be Nissan, fell through, jeopardizing separate funding initiatives.
NYSE halts Fisker’s trading
March 25 — Due to “abnormally low” stock prices, the New York Stock Exchange suspended Fisker’s trading and initiated delisting procedures.
Mismanagement of customer payments
March 27 — Fisker experienced a lapse in tracking customer payments, leading to an extensive internal review.
Further layoffs to conserve cash
April 29 — In a bid to conserve cash, Fisker executed another round of layoffs, with bankruptcy looming without new funding.
Non-payment to engineering partner
May 3 — The company ceased payments to an engineering firm vital to developing new models, amid allegations of withholding intellectual property.
Fourth safety investigation for the Ocean SUV
May 10 — Further scrutiny came with a fourth NHTSA investigation into the Ocean SUV, this time focusing on the emergency braking system’s unexpected activations.
Mass layoffs in a final effort for survival
May 29 — The company carried out extensive layoffs, reducing its workforce drastically in an effort to remain operational.
The unraveling of Fisker
May 31 — The collapse of Fisker began and ended with the problematic Ocean SUV, amid a backdrop of overconfidence, power struggles, and a lack of basic operational structures.
The Ocean SUV’s first recall
June 12 — Due to warning lights not meeting federal standards, Fisker initiated the first recall for the Ocean SUV.
Fisker declares bankruptcy
June 18 — Amid continued financial struggles, Fisker sought Chapter 11 bankruptcy protection in a last resort to salvage the company.
Lack of readiness as a car maker led to downfall
June 18 — Fisker’s post-bankruptcy plan includes limited operations to maintain some level of business activity in hopes of finding a buyer.
Financial woes flagged early
June 21 — Documents revealed Fisker experienced financial issues as early as August 2023, pushing it to seek partnerships or investments.
Dispute over assets begins
June 21 — The bankruptcy has set off a struggle for control of Fisker’s assets, with concerns raised over asset liquidation methods.
Request to sell EVs at a discount
July 3 — Fisker seeks court permission to sell its remaining EV stock at a significant discount, aiming for a quick liquidation.
Top executives reduce salaries to $1
July 9 — To ease financial pressure during bankruptcy, Henrik Fisker and Geeta Gupta-Fisker cut their salaries to $1.
Objection to asset sale plan
July 15 — The proposed plan to sell remaining assets faces opposition from the U.S. Trustee, complicating the bankruptcy process.
Approval for asset sale
July 16 — Fisker received court approval to sell its inventory, advancing the company towards finalizing its bankruptcy.
Compiled by Techarena.au.
Fanpage: TechArena.au
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