Henrik Fisker once envisioned a burgeoning electric vehicle empire at the startup he named after himself, which would be led by Ocean SUV. But cracks began to appear in that vision almost as soon as Ocean hit the road in 2023.
Fisker repeatedly cut production targets, failed to meet sales targets and laid off staff. Additionally, his Ocean SUV was beset with software and mechanical issues, rendering it unplayable for some. Add struggling brakes, sudden power loss and doors that wouldn’t open to the list of issues that led to multiple safety investigations and eventually a pause in production to raise new capital.
All of this and more have forced Fisker to file for Chapter 11 bankruptcy protection, marking the beginning of an unfortunate period for the eponymous startup. Below is a timeline of events that led the automaker to this point.
2023
Fisker missed its production target in the second quarter
July 7 — The automaker produced 1,022 Ocean SUVs in the second quarter of 2023, several hundred vehicles less than its expectation of producing between 1,400 and 1,700 EVs.
Fisker sold convertible notes to finance operations
July 10 — Fisker announced plans to sell $340 million in convertible debt, expecting net proceeds of $296.7 million. The automaker said it plans to use the funds to support overall corporate operations and add an additional battery pack line to “support growth” in 2024 and beyond. The company said the funds will also be used for capital expenditures and future product development.
Cutting production target
December 1 — Fisker cut its annual production guidance in an effort to free up $300 million in working capital. The company said it expected to produce about 10,000 vehicles in 2023. The production guidance is only a quarter of Fisker’s upward forecast from a year ago.
2024
Fisker struggled to meet internal sales goals
January 1 — Fisker fell short of its publicly stated goal of delivering 300 electric SUVs per day worldwide. The EV startup spent much of December aiming to meet a domestic sales target of 100 to 200 vehicles per day in North America, where most of its inventory and sales efforts are. Fisker fell far short of the target, often selling only one to two dozen of its Ocean SUVs a day here.
Ocean SUV investigated on complaints of loss of braking
January 15 — Federal safety regulators have opened an investigation into Fisker’s first electric vehicle for braking problems. Owners had filed 19 complaints with NHTSA for issues ranging from brake loss and gearshift problems to the driver’s door not opening from the inside and two cases of the vehicle’s hood suddenly flying up on the highway.
Owners reported sudden power loss and braking problems for months
February 9 — Since delivery of the initial fleet of Fisker Ocean SUVs, customers have reported more than 100 separate incidents of power loss. The company told TechCrunch that it believes these issues are rare and that it has resolved “almost all issues” with software updates. Customers have also reported sudden loss of braking power, problematic switches that cause them to be locked in or out of the vehicle, seat sensors that fail to detect the driver’s presence, and the SUV’s front hood suddenly flying up at high speeds.
The feds opened a second investigation into the Ocean SUV after other complaints
February 16 — The National Highway Traffic Safety Administration has opened a second investigation into EV startup Fisker’s Ocean SUV, after the agency received four complaints about the vehicle suddenly rolling over, including one injury. The company tells TechCrunch it is “fully cooperating” with the security agency.
Fisker laid off 15% of staff
February 29 — Fisker announced its plan to lay off 15% of its workforce and says it likely won’t have enough cash on hand to survive the next 12 months. The company says it is trying to find a way to raise that money as it operates through a pivot from direct sales to a merchant model.
Stop production with only $121 million in the bank
March 18 — Fisker announced it will halt production of its Ocean electric SUV for six weeks as it scrambles for a cash infusion. The company said in a regulatory filing that it had only $121 million in cash and cash equivalents as of March 15, $32 million of which is restricted or not immediately accessible. Fisker also said its accounts payable balance is up to $182 million and that there is “substantial doubt” it can continue operations without raising new capital.
Fisker lost the deal with Nissan, putting bailout funds at risk
March 25 – Negotiations between Fisker and a major automaker — reported to be Nissan — for a possible investment and collaboration broke down, a development that puts a separate short-term bailout financing effort in jeopardy. Fisker disclosed in a regulatory filing that the automaker broke off negotiations on March 22. He didn’t explain why. But the company had to continue negotiations as part of one of the closing conditions for a potential $150 million convertible note.
Trading suspended by NYSE
March 25 — The New York Stock Exchange suspended trading in Fisker’s stock and moved to delist the company because it is “no longer suitable for listing” due to “abnormally low” price levels.
Fisker lost track of millions of dollars in customer payments for months
March 27 — Fisker temporarily lost track of millions of dollars in customer payments as it ramped up shipments, leading to an internal audit that began in December and took months to complete. Fisker struggled to keep these transactions, which included down payments and in some cases, the full price of the vehicles, because of lax internal procedures for handling them, according to three people familiar with the internal payment crisis. In some cases, she delivered vehicles without collecting any form of payment at all, they said.
New round of layoffs to ‘save money’
April 29 — Electric vehicle startup Fisker Inc. is laying off more employees to “conserve cash,” fulfilling a plan announced a week ago, according to an internal email seen by TechCrunch. Fisker expects to file for bankruptcy protection within the next 30 days if it can’t come up with that money, according to a regulatory filing with the U.S. Securities and Exchange Commission.
Fisker solidified the engineering firm
May 3 — Fisker stopped paying the engineering firm that helped develop the Pear, a low-cost EV aimed at the masses, and the Alaska, Fisker’s entry into the hot-truck market. The firm also accuses Fisker of unfairly holding IP related to those vehicles.
Fisker Ocean faced fourth federal safety investigation
May 10 — The US National Highway Traffic Safety Administration (NHTSA) has opened a fourth investigation into the Fisker Ocean SUV to investigate multiple claims of “inadvertent automatic emergency braking.” In the eight complaints, it is alleged that the owners experienced sudden activation of the Automatic Emergency Braking system at times when there were no other vehicles or obstacles in the way of their cars.
Hundreds of workers cut to keep EV startup alive
May 29 — Hundreds more employees were laid off during the last week of May in a bid to stay afloat as the automaker continues to seek funding, a buyout or prepare for bankruptcy. A current employee and a fired employee estimated that only about 150 people remained in the company.
Inside Fisker’s Collapse
May 31 — Fisker’s road to ultimate ruin may have started and ended with its flawed Ocean SUV, which was riddled with mechanical and software problems. But it was riddled with hubris, power struggles and repeated failure to establish basic processes that are fundamental to any automaker.
Ocean SUV released the first recall
June 12 — Fisker issued the first recall for the Ocean SUV due to problems with warning lights, according to new information released by NHTSA. The instrument panel displays the brake, parking, and anti-lock system warning lights in the wrong font size and, sometimes, the wrong color, making them non-compliant with Federal Motor Vehicle Safety Standards. The agency also says that “multiple warning lights do not illuminate during the ignition cycle.”
Fisker filed for bankruptcy
June 18 — After a year of trying to stay afloat, Fisker filed for Chapter 11 bankruptcy protection. The California-based company had sought a deal with another automaker in a last-ditch effort to save the enterprise. The company valued assets of $500 million to $1 billion and liabilities of between $100 million and $500 million, according to the filing.
Fisker failed because it wasn’t ready to be a car company
June 18 – In the wake of its bankruptcy, Fisker said it will continue “reduced operations,” including “maintaining customer programs and compensating necessary vendors on a first-come, first-served basis.” In other words, it will continue to run a bare bones operation in the event that there is a willing buyer for the assets it is putting up for sale in the Chapter 11 case.