Henrik Fisker once envisioned a burgeoning electric-vehicle empire led by the Ocean SUV at his eponymous startup, but cracks in that vision started to show as soon as the Ocean hit the road in 2023.
Fisker repeatedly cut production goals, missed sales targets, and laid off employees. Additionally, its Ocean SUVs were hit by software and mechanical problems that rendered them inoperable for some. Problematic brakes, sudden loss of power, and doors that wouldn't open added to a list of issues that led to multiple safety investigations and ultimately a production halt to raise new capital.
These and other factors forced Fisker to file for Chapter 11 bankruptcy protection, marking the beginning of an ominous period for the startup that shares its name. Here's a timeline of how the automaker got to this point.
2023
Fisker misses second-quarter production target
July 7 – The automaker produced 1,022 Ocean SUVs in the second quarter of 2023, several hundred units below its EV production forecast of 1,400 to 1,700 units.
Fisker sold convertible bonds to raise capital.
July 10 — Fisker announces plans to sell $340 million in convertible notes, expecting net proceeds of $296.7 million. The company said it plans to use the proceeds for general corporate operations and to add a battery pack line to “support growth” beyond 2024. The company said the funds will also be used for capital expenditures and future product development.
Production target reduction
Dec. 1 – Fisker cut its full-year production outlook to free up $300 million in working capital. The company said it expects to produce about 10,000 vehicles in 2023. The production outlook is just a quarter of the more bullish forecast Fisker gave a year ago.
2024
Fisker struggled to meet internal sales targets
Jan. 1 — Fisker remains well short of its publicly announced goal of selling 300 electric SUVs a day worldwide. The EV startup spent much of December refocusing its inventory and sales efforts to meet its internal sales target of 100 to 200 vehicles a day in North America. Fisker fell far short of that goal, often selling only one to two dozen Ocean SUVs a day in North America.
Ocean SUV investigated after complaints of brake failure
Jan. 15 — Federal safety regulators have opened an investigation into Fisker's first electric vehicle over braking problems. Owners had filed 19 complaints with the National Highway Traffic Safety Administration (NHTSA) about a range of issues, including brake failure, problems with the gear shifter, a driver's door that wouldn't open from inside the car, and two incidents of the hood suddenly flying up on the highway.
The owner had been complaining of sudden power loss and braking issues for several months.
February 9 — Since the first Fisker Ocean SUVs were delivered, customers have reported more than 100 cases of power loss. The company told TechCrunch that the issues are rare and that software updates have resolved “nearly all issues.” Customers have also reported sudden brake failures, key fob malfunctions that lock the car out or inside, seat sensors not detecting the driver's presence, and the SUV's front hood suddenly flying up when driving at high speeds.
Federal government opens second investigation into Ocean SUVs after rollaway complaints
Feb. 16 — The NHTSA has opened a second investigation into Fisker's Ocean SUV after receiving four complaints about the vehicle suddenly rolling over, injuring one person. The company told TechCrunch it is “fully cooperating” with safety officials.
Fisker lays off 15% of its workforce
Feb. 29 — Fisker announced plans to lay off 15% of its workforce and said it likely doesn't have enough cash on hand to get through the next 12 months. The company said it's exploring ways to fund its shift from direct sales to a dealer model.
Production halted with just $121 million in the bank
March 18 — Fisker says 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 just $121 million in cash and cash equivalents as of March 15, of which $32 million was restricted or not immediately withdrawable. Fisker also said it had a $182 million accounts payable balance and that it was “substantially doubtful” it could continue operating without raising new capital.
Fisker loses Nissan contract, bailout fund at risk
March 25 – Fisker's talks with a major automaker, reportedly Nissan, about a possible investment and partnership have been terminated, a development that puts another short-term rescue fundraising effort at risk. Fisker said in a regulatory filing that the automaker terminated talks on March 22. It did not explain why. But the company was required to continue negotiations as one of the conditions for closing a $150 million convertible note.
NYSE trading halts
March 25 – The New York Stock Exchange halts trading of Fisker shares and removes the company from the stock exchange, stating that its stock price is “abnormally low” and that it is “no longer suitable for listing.”
Fisker has been missing millions of dollars in customer payments for months
March 27 – Fisker temporarily lost track of millions of dollars in customer payments as it expanded deliveries, leading to an internal audit that began in December and took months to complete. Fisker had trouble keeping track of these transactions, which included down payments and in some cases the full value of vehicles, because it had loose internal procedures for tracking them, according to three people familiar with the internal payments crisis. In some cases, the company delivered vehicles without receiving any form of payment, the people said.
New job cuts to “preserve cash”
April 29 – Fisker lays off more employees to “preserve cash,” according to an internal email seen by TechCrunch, completing a plan it announced a week ago. Fisker plans to file for bankruptcy protection within the next 30 days if it can't raise the funds, according to regulatory filings with the U.S. Securities and Exchange Commission.
Fisker refuses to pay engineering firm
May 3 – Fisker Inc. has suspended payments to engineering firms involved in the development of its low-cost consumer electric car, the Pear, and its entrant into the booming pickup truck market, the Alaska. The company also accused Fisker of wrongfully retaining intellectual property rights related to the vehicles.
Fisker Ocean faces fourth federal safety investigation
May 10 – NHTSA opens its fourth investigation into the Fisker Ocean SUV, looking into multiple complaints of “inadvertent automatic emergency braking.” In eight complaints, owners reported experiencing sudden activation of the automatic emergency braking system when no other vehicles or obstacles were in the vehicle's path.
EV startup cuts hundreds of employees to stay afloat
May 29 — Hundreds more employees were laid off in the last week of May in a bid to stay afloat as the automaker continues to raise capital, get acquired and prepare for bankruptcy. One current employee and one laid off employee estimate that only about 150 people remain at the company.
Inside the Fisker collapse
May 31—Fisker's road to ultimate downfall may have begun and ended with its flawed Ocean SUV riddled with mechanical and software problems, but it was also paved with hubris, power struggles and a repeated failure to establish the fundamental processes on which any automaker rests.
Ocean SUV issues first recall
June 12—Fisker has issued its first recall of Ocean SUVs due to a warning light issue, according to new information released by the NHTSA. The instrument panel displays warning lights for the brake, parking and anti-lock braking systems in the wrong font size and, in some cases, the wrong color, which doesn't comply with federal motor vehicle safety standards. The agency also says “multiple warning lights do not illuminate during the ignition cycle.”
Fisker files for bankruptcy
June 18 — After a year of financial difficulties, Fisker files for Chapter 11 bankruptcy protection. The California-based company had been exploring a deal with another automaker as a last resort. The filing estimates the company's assets at $500 million to $1 billion and liabilities at $100 million to $500 million.
Fisker failed because it wasn't ready to be a car company.
June 18 — Fisker says it will continue “reduced operations” after bankruptcy, including “maintaining customer programs and compensating vendors going forward.” In other words, it will continue to operate on a bare minimum in case a buyer comes along for its assets, which are up for sale under Chapter 11 bankruptcy.
Fisker was in financial trouble in August 2023.
June 21—Fisker faces “potential financial distress” as early as August 2023, according to a new Chapter 11 bankruptcy filing. The looming financial difficulties have led Fisker to seek partnerships and investments from other automakers, according to the filing.
The battle for Fisker's assets is already heating up.
June 21 — Just days after filing for bankruptcy, a battle over Fisker's assets has already begun, with one lawyer claiming the startup is liquidating its assets “outside of court supervision.” At issue is Fisker's relationship with its largest secured lender, which loaned Fisker more than $500 million in 2023 as the company's financial troubles loomed behind the scenes.
Fisker asks bankruptcy court to allow it to sell EVs for about $14,000 each
If a Delaware bankruptcy court judge approves Fisker's request to sell its remaining inventory to a New York-based car leasing company, the automaker could sell 3,231 completed EVs for $46.25 million, or about $14,000 each.
Henrik Fisker and Gita Gupta-Fisker's salaries cut to $1
Henrik Fisker and his wife, Fisker co-founder Gita Gupta Fisker, are taking a $1 salary cut to help fund the failed electric-vehicle startup's bankruptcy proceedings. In addition to the pay cuts, Fisker restructuring chief John DiDonato said in a filing on Tuesday that Fisker will defer payments of “certain severance payments, certain employee health care benefits and vehicle sales incentives” that are owed.