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 have filed 19 complaints with the NHTSA, ranging from weak braking to a problem with the gear shifter, a driver's door that won't open from inside the car and two instances of the hood flying up unexpectedly on the highway.
Owners had been reporting sudden power loss and braking issues for several months.
Feb. 9 — Customers have reported more than 100 power loss incidents since the first Fisker Ocean SUVs were delivered. The company told TechCrunch that the issues are rare and that software updates have resolved “nearly all issues.” Customers have also reported brakes suddenly losing power, key fobs malfunctioning and locking the car out or inside, seat sensors not detecting the driver's presence, and the SUV's front hood suddenly popping up at high speeds.
Federal government opens second investigation into Ocean SUVs after Rollaway complaints
February 16 — The US National Highway Traffic Safety Administration has opened a second investigation into electric vehicle startup Fisker's Ocean SUV after it received four complaints of the vehicles suddenly rolling over, including one injury. The company told TechCrunch it is “fully cooperating” with the safety agency.
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.
With only $121 million in the bank, production has been halted
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 struggled to keep track of those transactions, which included down payments and in some cases the full price of a vehicle, 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 – Electric vehicle startup Fisker is laying off more employees to “preserve cash” as it carries out plans it announced a week ago, according to an internal email seen by TechCrunch. Fisker plans to file for bankruptcy within the next 30 days if it can't raise the funding, according to regulatory filings with the U.S. Securities and Exchange Commission.
Fisker refuses to pay engineering firm
May 3 – Fisker has stopped payments to engineering firms that helped develop the Pear, a low-cost electric car aimed at consumers, and the Alaska, an entry into the booming pickup truck market. The company also accused Fisker of improperly retaining intellectual property related to those vehicles.
Fisker Ocean faces fourth federal safety investigation
May 10 — The National Highway Traffic Safety Administration (NHTSA) has opened its fourth investigation into the Fisker Ocean SUV, looking into multiple claims of “inadvertent automatic emergency braking.” Eight complaints allege that owners experienced 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 an effort 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 announced its first recall of Ocean SUVs due to a warning light problem, 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 sometimes 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 deals with other automakers 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.