Timeline of Fisker’s Troubled Journey
2023
July 7: Fisker fell short of its Q2 production target, producing 1,022 Ocean SUVs instead of the expected 1,400-1,700.
July 10: Fisker sold $340 million in convertible notes, expecting to net $296.7 million, to fund operations, add a battery pack line, and develop future products.
December 1: Fisker cut its annual production guidance to about 10,000 vehicles, significantly lower than its initial forecast.
2024
January 1: Fisker struggled to meet its sales goals, delivering far fewer vehicles than the targeted 300 per day.
January 15: Federal safety regulators opened an investigation into the Ocean SUV over braking issues and other problems.
February 9: Customers reported over 100 incidents of power loss in the Ocean SUVs. Fisker claimed most issues were resolved through software updates.
February 16: The National Highway Traffic Safety Administration (NHTSA) opened a second investigation into the Ocean SUV after receiving complaints about the vehicle rolling away unexpectedly.
February 29: Fisker announced layoffs of 15% of its workforce, citing insufficient funds to continue operations without new capital.
March 18: Fisker paused production of the Ocean SUV for six weeks, revealing it had only $121 million in cash and significant payables.
March 25: Fisker’s potential deal with a major automaker fell through, jeopardizing a separate $150 million funding effort. The NYSE suspended trading of Fisker shares due to “abnormally low” price levels.
March 27: Fisker temporarily lost track of millions in customer payments, leading to an internal audit that revealed significant procedural lapses.
April 29: Fisker announced another round of layoffs to preserve cash, indicating it might seek bankruptcy protection if unable to raise funds.
May 3: Fisker stopped paying an engineering firm involved in developing new vehicle models, leading to accusations of wrongful retention of intellectual property.
May 10: NHTSA opened a fourth investigation into the Ocean SUV over claims of inadvertent Automatic Emergency Braking activation.
May 29: Fisker laid off hundreds more employees in a last effort to stay afloat, leaving around 150 staff.
May 31: The culmination of Fisker’s downfall was attributed to the flawed Ocean SUV, internal conflicts, and inadequate foundational processes.
June 12: Fisker issued a recall for the Ocean SUV due to non-compliant warning light displays.
June 18: Fisker filed for Chapter 11 bankruptcy protection after failing to secure a rescue deal. The company reported assets of $500 million to $1 billion and liabilities between $100 million and $500 million.
Conclusion
Fisker’s journey reflects a series of missteps, from production shortfalls and financial woes to safety investigations and internal mismanagement. The company’s bankruptcy filing marks a significant downturn for an enterprise that once aspired to revolutionize the electric vehicle market.
