Henrik Fisker had once dreamed of a growing electric vehicle (EV) empire at his eponymous start-up led by the Ocean SUV. However, almost immediately after the Ocean’s release in 2023, it became clear that this vision had flaws.
Production Challenges
Fisker reduced production targets multiple times, failed to meet sales goals, and laid off employees. The Ocean SUV faced severe software and mechanical challenges, leading to operational issues and safety investigations.
Bankruptcy Filing
These events culminated in Fisker filing for Chapter 11 bankruptcy, marking a significant downturn for the company. Below is a timeline of the developments leading to this critical juncture.
2023
Missed Q2 Production Goal
July 7 — The automaker manufactured 1,022 Ocean SUVs during Q2 2023, falling several hundred vehicles short of expectations.
Issued Convertible Notes
July 10 — To fund general corporate activities and a new battery line, Fisker announced plans to sell $340 million in convertible debt, expecting $296.7 million in net revenue.
Cutting Production Target
December 1 — To leverage $300 million in working capital, Fisker cut its annual production guidance to around 10,000 vehicles.
2024
Struggled to Meet Internal Sales Goals
January 1 — Fisker was far from its target of delivering 300 electric SUVs per day, often selling only a few dozen daily in North America.
Investigated Over Braking Loss Complaints
January 15 — Federal regulators opened an investigation into braking issues with the Ocean SUV, receiving 19 complaints from owners.
Reports of Power Loss and Brake Issues
February 9 — Customers reported over 100 loss-of-power incidents, alongside multiple other issues affecting vehicle functionality.
Significant Events
Lost Nissan Deal EV
March 25 — Negotiations with Nissan for potential investment were terminated, jeopardizing Fisker’s financial rescue efforts.
NYSE Suspends Trading
March 25 — The New York Stock Exchange suspended trading of Fisker shares due to “abnormally low” price levels.
Lost Track of Customer Payments
March 27 — An internal audit revealed Fisker misplaced millions in customer payments during a delivery expansion.
Next Wave of Layoffs
April 29 — Fisker laid off more workers to conserve cash, citing potential bankruptcy if funding wasn’t secured soon.
Continued Challenges EV
Stiffed Engineering Firm
May 3 — Fisker ceased payments to the engineering firm developing key models, leading to legal disputes.
Fourth Federal Safety Probe
May 10 — NHTSA initiated a fourth investigation into the Ocean SUV over inadvertent automatic emergency braking issues.
Hundreds of Workers Laid Off
May 29 — Fisker laid off hundreds of employees to survive, reducing its workforce significantly.
Inside Fisker’s Downfall
May 31 — The ultimate ruin was tied to the flawed Ocean SUV, plagued with mechanical and software issues.
First Recall Issued
June 12 — Fisker recalled the Ocean SUV due to malfunctioning warning lights, violating federal safety standards.
Final Steps
Filed for Bankruptcy
June 18 — Fisker filed for Chapter 11 bankruptcy, reporting assets between $500 million and $1 billion and liabilities from $100 million to $500 million.
Acknowledgment of Failure EV
June 18 — Fisker admitted it wasn’t ready to operate as a car company, focusing on maintaining customer programs.
Financial Distress Since August 2023
June 21 — Financial distress began as early as August 2023, prompting Fisker to seek partnerships and investments.
Legal Battles Over Assets
June 21 — Legal disputes emerged over Fisker’s assets just days after bankruptcy filings.
Request to Sell EVs
June 21 — Fisker sought court approval to sell the remaining inventory to a leasing company for approximately $14,000 per vehicle.
Salary Cuts for Leadership
June 21 — Henrik Fisker and Geeta Gupta-Fisker reduced their salaries to $1 to support the company’s bankruptcy proceedings.
