Henrik Fisker once envisioned a thriving EV empire at the startup he named after himself, led by Ocean SUV. But cracks began to appear on this vehicle as soon as the Ocean hit the road in 2023.
Fisker cut multiple production target, failed to meet sales target And fired employee. Moreover, its Ocean SUV is Stuck with software and mechanical issuesmaking it inoperable for some people. More trouble brakeSudden power outages and doors that won’t open are among the problems that can lead to multiple safety investigations and finally one production halt to raise new capital.
All of this and more has forced Fisker filed for Chapter 11 bankruptcy protection, marking the beginning of an unfortunate period for the eponymous startup. Here’s a timeline of the events that led to the automaker’s current state.
2023
Fisker misses Q2 production target
July 7 — The automaker produced 1,022 Ocean SUVs in the second quarter of 2023, missing a few hundred cars with expectations of producing between 1,400 and 1,700 electric vehicles.
Fisker has sold convertible bonds to finance operations.
July 10 — Fisker announced plans to sell $340 million in convertible debtnet proceeds are expected to be $296.7 million. The automaker said it plans to use the proceeds to support the company’s general operations and additional battery packaging to “support growth” in 2024 and beyond. The company said the money will also be used for capital expenditures and future product development.
Production reduction target
December 1 — Fisker cut annual production guidance in an effort to free up $300 million in working capital. The company said it expects to produce about 10,000 vehicles in 2023. The production guidance is just a quarter of Fisker’s optimistic forecast from a year ago.
2024
Fisker has struggled to hit internal sales targets.
January 1 — Fisker is still far from reaching its announced goal Delivering 300 Electric SUVs Every Day GloballyThe electric vehicle startup spent much of December trying to hit its internal sales target of 100 to 200 vehicles per day in North America, where the bulk of its inventory and sales efforts are located. Fisker fell short of that goal, typically selling just one to two dozen Ocean SUVs per day there.
Ocean SUV under investigation over brake failure complaints
January 15 — Federal safety regulators have open an investigation into Fisker first tram about brake problems. Owners have filed 19 complaints with National Highway Traffic Safety Administration (NHTSA) of problems ranging from brake failure to gearshift malfunction, the driver’s door not opening from the inside and two instances of the hood suddenly flying up on the highway.
Owners have reported sudden power loss and brake failure for months
February 9 — Since the first fleet of Fisker Ocean SUV delivered, customer reported more than 100 separate power outages.. The company said According to TechCrunch The company believes these issues are rare and has addressed “nearly all of them” with software updates. Customers have also reported sudden loss of braking power, faulty keys that lock inside or outside the vehicle, seat sensors that fail to detect the presence of the driver, and SUVs’ front hoods that suddenly pop open at high speeds.
Federal authorities launch second investigation into Ocean SUV after wheelchair complaints
February 16 — National Highway Traffic Safety Administration (NHTSA) open a second investigation into a Fisker Ocean SUV after the agency received four complaints about the car unexpectedly rolling away, injuring one person. The company told TechCrunch that it was “fully cooperating” with safety authorities.
Fisker has laid off 15% of its staff.
February 29 — Fisker announced plans to lay off 15% of its workforce And speak It is likely that the company does not have enough cash to survive the next 12 months. The company said it is trying to find ways to raise that money as it shifts away from direct sales to agency model.
Production halted with just $121 million in the bank
March 18 — Fisker announced it will suspend production of its Ocean electric SUV for six weeks. as the company struggles to secure cash. The company said in a regulatory filing that as of March 15, it had just $121 million in cash and cash equivalents, of which $32 million was restricted or not immediately accessible. Fisker also said the company had $182 million in outstanding liabilities and that there was “substantial doubt” that it could continue operations without raising additional capital.
Fisker loses Nissan contract, putting bailout fund at risk
March 25 — Talks between Fisker and a major automaker — reportedly Nissan — about a potential investment and partnership has been terminateda development that puts a separate bailout funding effort in jeopardy. Fisker disclosed in a regulatory filing that the automaker ended talks on March 22. It did not explain why. But the company must continue talks as part of one of the closing conditions for a Potential $150 million convertible bonds.
Trading suspended by NYSE
March 25 — New York Stock Exchange Stocks suspended from trading of Fisker and moved to delist the company because it was “no longer suitable for listing” due to its “unusually low” price.
Fisker Lost Track of Millions of Dollars in Customer Payments for Months
March 27 — Fisker temporary Lost track of millions of dollars in customer payments as the company ramped up deliveries, leading to an internal audit that began in December and took months to complete. Fisker struggled to track these transactions, including down payments and in some cases the full price of the vehicle, because of lax internal processes for tracking them, according to three people familiar with the internal billing crisis. In some cases, the company delivered vehicles without collecting any form of payment, they said.
New round of layoffs to ‘conserve cash’
April 29 — Fisker lay off more staff to “keep cash,” carry out well a plan announced a week agoFisker is expected to file for bankruptcy protection within the next 30 days if it can’t come up with that money, according to a filing with the U.S. Securities and Exchange Commission.
Fisker Solid State Engineering Company
May 3 — Fisker stopped paying the engineering company helped develop the Pear, a low-cost electric car for the masses, and the Alaska, Fisker’s foray into the hot market. Pickup truck market. The company also accused Fisker of illegally holding IP related to those cars.
Fisker Ocean faces fourth federal safety investigation
May 10 — NHTSA has opened a fourth investigation into the Fisker Ocean SUV to investigate multiple complaints of “accidental automatic emergency braking.” Eight complaints allege that owners experienced the automatic emergency braking system suddenly engaging at moments when there were no other vehicles or obstacles in their vehicle’s path.
Hundreds of workers cut to keep EV startup afloat
May 29 — Hundreds of other employees have laid off last week of may in a bid to stay afloat as the automaker continues to seek funding, a buyout or bankruptcy. One current employee and one laid-off employee estimate that only about 150 people remain at the company.
Inside the Fall of Fisker
May 31 – The Fisker’s path to ultimate destruction may have started and ended with the aging Ocean SUV, riddled with mechanical and software problems. But it was also riddled with arrogance, power struggles and a persistent failure to establish the basic processes that underpin any automaker.
Ocean SUV Issues First Recall
June 12 — Fisker has issued its first recall for the Ocean SUV because of a problem with its warning lights, according to new information released by NHTSA. The dashboard displays braking, parking, and anti-lock brakes brake system The warning lights have incorrect font size and sometimes, wrong colormaking them non-compliant with Federal Motor Vehicle Safety Standards. The agency also said that “many warning lights do not illuminate during the ignition cycle.”
Fisker has filed for bankruptcy.
June 18 — After a year of struggling to stay afloat, Fisker file for Chapter 11 bankruptcy protectionThe California-based company has been seeking a deal with another automaker in a last-ditch effort to save the business. According to the filing, the company estimates its assets to be between $500 million and $1 billion and its liabilities to be between $100 million and $500 million.
Fisker failed because it wasn’t ready to be a car company.
June 18 — After bankruptcyFisker said it will continue to “reduce operations,” including “maintaining customer programs and compensating essential suppliers on a continuing basis.” In other words, it will continue to manage its core operations in the event a buyer is willing to purchase the assets it is selling in its Chapter 11 case.
Fisker has been facing financial difficulties since August 2023
June 21 — According to new filings in its Chapter 11 bankruptcy proceedings, Fisker is facing “potential financial difficulties” as early as August 2023. That looming financial difficulty has prompted Fisker to seek a partnership or investment from another automaker, according to the filing.
The battle over Fisker’s assets is heating up.
June 21 — The Battle Over Fisker’s Assets has been charged Just days after filing for bankruptcy, an attorney announced that the startup had liquidated its assets “outside of court supervision.” At issue is the relationship between Fisker and the company’s largest secured lender, which lent Fisker more than $500 million in 2023 as the company’s financial woes loomed.
Fisker asks bankruptcy court to sell electric cars for about $14,000 each
If a judge in the Delaware Bankruptcy Court accept Fisker’s request to sell its remaining inventory to a New York-based company lease The automaker will be able to sell 3,231 completed electric vehicles for $46.25 million, or about $14,000 per vehicle.
Henrik Fisker, Geeta Gupta-Fisker Cut Salaries to $1
Henrik Fisker and his wife, Fisker co-founder Geeta Gupta-Fisker, are lower their wages to $1 to keep its failed EV startup’s bankruptcy proceedings funded. In addition to the pay cuts, Fisker’s chief restructuring officer John DiDonato said in a filing Tuesday that Fisker will defer “certain severance payments, certain employee health benefits and vehicle sales incentive bonuses” that are still outstanding.
