Henrik Fisker once envisioned a rising EV empire in his self-named startup, which was to be led by Ocean SUV. But cracks began to appear in that vision almost as soon as Ocean hit the road in 2023.
Fisker has cut production targets multiple times, failed to meet sales targets and laid off staff. In addition, his Ocean SUV was riddled with software and mechanical issues, rendering it inoperable for some. Add annoying brakes, sudden loss of power, and doors that wouldn’t open to the list of issues that led to multiple safety investigations and eventually a production halt in order to raise new capital.
All of this and more forced Fisker to file for Chapter 11 bankruptcy protection, marking the beginning of an ominous period for the eponymous startup. Below is a timeline of the events that led the automotive industry to this point.
2023
Fisker missed its production target for the second quarter
July 7 — The automaker produced 1,022 Ocean SUVs in the second quarter of 2023, several hundred vehicles short of its expectation to produce between 1,400 and 1,700 EVs.
Fisker sold convertible notes in financing activities
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 its general corporate operations and add an additional line of battery packs to “support growth” in 2024 and beyond. The company said the funds will also be used for capital expenditures and future product development.
Production target cut
December 1st — Fisker cut its 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. Production guidance is just a quarter of Fisker’s upward forecast from a year ago.
2024
Fisker struggled to meet internal sales targets
January 1st — Fisker fell far short of its publicly stated goal of delivering 300 electric SUVs per day worldwide. The EV startup spent much of December aiming to hit an internal sales target of between 100 and 200 vehicles per day in North America, where the bulk of its inventory and sales efforts are located. Fisker fell well short of that goal, often selling only one to two dozen of its Ocean SUVs a day here.
The Ocean SUV was investigated for complaints of brake loss
January 15th — Federal safety regulators have launched an investigation into Fisker’s first electric vehicle over braking problems. Owners had filed 19 complaints with NHTSA for issues ranging from brake loss and shifter problems to the driver’s door failing to open from the inside and two cases of the vehicle’s hood suddenly flying off the highway.
Owners have reported sudden power loss and braking problems for months
February 9 — Since the initial fleet of Fisker Ocean SUVs was delivered, customers have reported more than 100 separate incidents of power loss. The company told TechCrunch that it believes these issues are rare and has resolved “almost all issues” with software updates. Customers have also reported a sudden loss of braking power, problematic key fobs that cause them to lock themselves in or out of the vehicle, seat sensors that do not detect the driver’s presence, and the front hood of the SUV suddenly flying up at high speeds.
Feds open 2nd investigation into Ocean SUV after rollover complaints
February 16 — The National Highway Traffic Safety Administration has launched a second investigation into EV startup Fisker’s Ocean SUV after the agency received four complaints about the vehicle rolling unexpectedly, including an injury. The company tells TechCrunch that 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 he probably doesn’t have enough cash to see him through 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 dealership model.
Production halted with just $121 million in the bank
March 18 — Fisker announced it will halt production of its Ocean electric SUV for six weeks as it tries to raise cash. The company said in a regulatory filing that it had just $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 stands at $182 million and there is “substantial doubt” it can continue as a going concern without raising new capital.
Fisker lost the Nissan deal, putting bailout funds at risk
25th of March — Negotiations between Fisker and a major automaker — reported to be Nissan — for a possible investment and partnership have ended, a development that jeopardizes a separate short-term bailout financing effort. Fisker revealed in a regulatory filing that the automaker ended 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 was suspended by the NYSE
25th of March — The New York Stock Exchange has suspended trading in Fisker’s stock and moved to delist the company because it is “no longer eligible for listing” due to “unusually 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 scaled back deliveries, prompting an internal audit that began in December and took months to complete. Fisker struggled to track those transactions, which included down payments and in some cases, the full price of the vehicles, because of lax internal processes for tracking them, according to three people familiar with the internal payments crisis. In a few cases, he delivered vehicles without collecting any payment method at all, they said.
New round of layoffs to ‘conserve cash’
April 29 — EV startup Fisker Inc. is laying off more employees to “preserve cash,” implementing 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 stiffened engineering company
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 company also accuses Fisker of illegally retaining IP related to these vehicles.
Fisker Ocean has faced its fourth federal safety investigation
May 10 — The US National Highway Traffic Safety Administration (NHTSA) has launched a fourth investigation into the Fisker Ocean SUV to investigate multiple allegations of “inadvertent automatic emergency braking.” The eight complaints state that owners experienced sudden activation of the automatic emergency braking system at times when there were no other vehicles or obstacles in their cars’ path.
Hundreds of workers are being cut to keep the EV startup alive
May 29 — Hundreds more workers were laid off in the last week of May in an effort to stay afloat as the automaker continues to seek financing, a buyout or prepare for bankruptcy. One current and one fired employee estimated that only about 150 people remained with the company.
Inside Fischer’s meltdown
May 31st — Fisker’s road to total disaster may have started and ended with its flawed Ocean SUV, which was riddled with mechanical and software issues. But it was littered with hubris, power struggles and a repeated failure to establish core processes that are fundamental to any automaker.
Ocean SUV issued the first recall
June 12 — Fisker has issued the first recall for its Ocean SUV due to warning light problems, according to new information released by NHTSA. The instrument panel displays the brake, park, and anti-lock brake 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 “multiple warning lights fail to illuminate during the ignition cycle.”
Fisker filed for bankruptcy
June 18 — After a year of fighting to stay afloat, Fisker filed for Chapter 11 bankruptcy. The California-based company was seeking a deal with another automaker in a last-ditch effort to save the business. According to the filing, the company has estimated assets of $500 billion to $1 billion and liabilities of between $100 million and $500 million.
Fisker failed because it wasn’t ready to be a car company
June 18 — In the wake of its bankruptcy filing, Fisker said it would continue “reduced operations,” including “maintaining customer programs and compensating essential suppliers on an advanced basis.” In other words, it will continue to run a bare-bones business in the event that there is a willing buyer for the assets it is putting up for sale in the Chapter 11 case.
