Fisker's Epic Fail: A Timeline of the EV Startup's Bankruptcy

Fisker's Epic Fail: A Timeline of the EV Startup's Bankruptcy

Henrik Fisker once envisioned a thriving EV empire with the Ocean SUV as its flagship. However, cracks began to appear almost immediately after the Ocean hit the road in 2023.

Fisker repeatedly slashed production targets, missed sales goals, and laid off staff. The Ocean SUV was plagued by software and mechanical issues, leading to multiple safety investigations and a production pause. This ultimately forced Fisker to file for Chapter 11 bankruptcy protection.

Here's a breakdown of the events that led to Fisker's downfall:

2023

• July 7: Fisker fell short of its Q2 production target, producing only 1,022 Ocean SUVs instead of the expected 1,400-1,700.
• July 10: The company issued $340 million in convertible debt to fund operations, aiming to use the proceeds for general corporate operations and expansion.
• December 1: Fisker slashed its annual production guidance to 10,000 vehicles, a mere quarter of its previous forecast, in an attempt to free up working capital.

2024

• January 1: Fisker struggled to meet its sales goal of 300 electric SUVs per day globally, often selling only a handful of vehicles daily.
• January 15: Federal safety regulators opened an investigation into the Ocean SUV due to braking problems and other issues like gear shifter problems and doors failing to open.
• February 9: Customers reported over 100 loss-of-power incidents, leading to software updates, but other issues like brake loss and hood flying up at high speeds persisted.
• February 16: The NHTSA opened a second investigation after receiving complaints of the vehicle rolling away unexpectedly.
• February 29: Fisker laid off 15% of its workforce, acknowledging it likely lacked sufficient funds to survive the next year and planned to transition from direct sales to a dealership model.
• March 18: Production was paused for six weeks due to a cash shortage, with Fisker holding only $121 million in cash.
• March 25: Negotiations with a major automaker (reportedly Nissan) for investment and collaboration were terminated, jeopardizing a potential $150 million funding source. Trading of Fisker shares was suspended by the NYSE.
• March 27: Fisker lost track of millions of dollars in customer payments due to lax internal procedures, leading to an internal audit.
• April 29: More layoffs were announced to “preserve cash,” and Fisker revealed it would seek bankruptcy protection within 30 days if funding was not secured.
• May 3: Fisker stopped paying the engineering firm that developed the Pear and Alaska vehicles, sparking legal disputes over intellectual property.
• May 10: The NHTSA launched a fourth investigation into the Ocean SUV following reports of unintended Automatic Emergency Braking activation.
• May 29: Hundreds of employees were laid off in a last-ditch effort to secure funding, a buyout, or prepare for bankruptcy.
• June 12: Fisker issued the first recall for the Ocean SUV due to issues with warning lights not meeting federal safety standards.
• June 18: Fisker filed for Chapter 11 bankruptcy protection, announcing it would continue reduced operations while exploring potential asset sales. Fisker estimated assets of $500 million to $1 billion and liabilities of between $100 million and $500 million.
• June 21: A new filing revealed that Fisker had been facing financial distress as early as August 2023, and a legal battle over Fisker's assets emerged.
• July 3: Fisker requested court approval to sell its remaining inventory of Ocean SUVs to a leasing company for $14,000 per vehicle.
• July 9: Henrik Fisker and his wife, Geeta Gupta-Fisker, lowered their salaries to $1 to keep bankruptcy proceedings funded.
• July 15: The U.S. Trustee objected to a deal aimed at keeping Fisker's bankruptcy proceedings alive.
• July 16: A bankruptcy judge approved the sale of Fisker's Ocean SUVs to a leasing company, clearing the way for the rest of the bankruptcy process.
• July 29: The focus shifted to the liquidation of Fisker's assets, with the secured lender, Heights Capital Management, seeking a favorable outcome.

Fisker's downfall underscores the challenges of establishing a successful car company, highlighting the importance of meticulous planning, strong financial management, and a robust production process.