The Rise and Fall of Fisker: A Cautionary Tale in the EV Industry
Henrik Fisker’s ambitious vision for an electric vehicle (EV) empire began to unravel almost as soon as the Ocean SUV hit the roads in 2023. Despite its promising start, the company faced numerous challenges, including production target cuts, sales goal misses, and debilitating software and mechanical issues in its flagship vehicle.
The Ocean SUV’s problems led to multiple safety investigations, a pause in production, and ultimately, Fisker’s filing for Chapter 11 bankruptcy protection.
In this comprehensive timeline, we explore the events that led to Fisker’s downfall, highlighting the warning signs and missteps that ultimately sealed the company’s fate.
July 2023: Fisker Misses Q2 Production Target
Fisker produced only 1,022 Ocean SUVs, falling short of its expected 1,400-1,700 vehicles. This early indication of production struggles foreshadowed future challenges.
July 2023: Fisker Secures Funding with Convertible Notes
Fisker sold $340 million in convertible debt to support operations, add a battery pack line, and fund future products. However, this move would later contribute to the company’s financial woes.
December 2023: Fisker Cuts Production Guidance
Fisker reduced its annual production guidance to free up working capital, a sign of the company’s growing financial constraints.
January 2024: Fisker Struggles to Meet Sales Goals
The company fell far short of its goal to deliver 300 electric SUVs per day globally, selling only one to two dozen vehicles daily in North America.
January 2024: Ocean SUV Investigated for Braking Loss Complaints
Federal safety regulators opened an investigation into the Ocean SUV due to braking problems, including reports of sudden power loss and doors that wouldn’t open.
February 2024: Fisker Faces Second Safety Probe
The National Highway Traffic Safety Administration launched a second investigation into the Ocean SUV after reports of rollaway incidents, including one injury.
February 2024: Fisker Lays Off 15% of Staff
The company announced layoffs and expressed doubts about its ability to survive the next 12 months without raising new capital.
March 2024: Fisker Pauses Production Amid Financial Struggles
With only $121 million in cash and a substantial accounts payable balance, Fisker halted production for six weeks to seek a cash infusion.
March 2024: Fisker Loses Nissan Deal and Trading is Suspended
Negotiations with Nissan terminated, putting rescue funds at risk, and the New York Stock Exchange suspended trading shares due to “abnormally low” price levels.
April 2024: Fisker Loses Track of Customer Payments
The company temporarily lost track of millions of dollars in customer payments, leading to an internal audit and further financial woes.
April 2024: Fisker Announces New Round of Layoffs
The company laid off more employees to “preserve cash,” with plans to seek bankruptcy protection if funding couldn’t be secured.
May 2024: Fisker Faces Fourth Federal Safety Probe
The NHTSA opened a fourth investigation into the Ocean SUV, this time for “inadvertent Automatic Emergency Braking” complaints.
May 2024: Hundreds of Workers Cut to Keep EV Startup Alive
Fisker laid off hundreds more employees in a last-ditch effort to stay afloat.
May 2024: Ocean SUV Issued First Recall
Fisker recalled the Ocean SUV due to problems with warning lights, a minor issue compared to the vehicle’s more significant mechanical and software problems.
June 2024: Fisker Files for Bankruptcy
After a year of struggling, Fisker filed for Chapter 11 bankruptcy protection, estimating assets of $500 to $1 billion and liabilities of between $100 million and $500 million.
In conclusion, Fisker’s collapse serves as a cautionary tale in the EV industry. The company’s hubris, power struggles, and failure to establish basic processes ultimately led to its downfall.
As the EV market continues to evolve, Fisker’s story highlights the importance of prioritizing quality, reliability, and financial stability in the pursuit of innovation.
