The fall of EV startup Fisker: A comprehensive timeline

Henrik Fisker once dreamed of building a thriving electric vehicle (EV) empire through his namesake startup, with the Ocean SUV at its forefront. However, this vision began to unravel shortly after the Ocean's debut in 2023. The company faced numerous setbacks, including repeatedly lowering production targets, missing sales projections, and laying off employees. The Ocean SUV, initially seen as a flagship product, was plagued by a range of mechanical and software problems, including faulty brakes, unexpected power loss, and malfunctioning doors. These issues sparked multiple safety investigations, ultimately leading Fisker to suspend production in a desperate bid to secure new funding. The culmination of these challenges forced Fisker to seek Chapter 11 bankruptcy protection, marking a troubling chapter for the ambitious startup. The timeline of events leading to Fisker's current predicament is telling. In early July 2023, the company managed to produce only 1,022 Ocean SUVs in the second quarter, falling significantly short of its target of 1,400 to 1,700 units. By mid-July, Fisker announced plans to raise $340 million in convertible debt, aiming for $296.7 million in net proceeds to support its operations and future product development. However, by December, the automaker slashed its annual output forecast to just 10,000 vehicles, a stark contrast to its more optimistic predictions from the previous year. The company struggled to meet its goal of delivering 300 electric SUVs daily, often selling only a handful each day. In January 2024, federal safety regulators launched an investigation into the Ocean due to numerous complaints regarding braking issues and other operational failures. By February, reports of over 100 loss-of-power incidents emerged, further complicating the startup's challenges. The National Highway Traffic Safety Administration (NHTSA) opened multiple inquiries into the vehicle's performance, including unexpected rollaways and erroneous activations of the Automatic Emergency Braking system. As cash reserves dwindled, Fisker announced layoffs of 15% of its workforce in late February, signaling severe financial distress. The company's situation worsened in March when it had to pause production for six weeks to seek funding, revealing only $121 million in cash, with much of it restricted. Negotiations with a potential investor reportedly ended abruptly, leaving the startup in a precarious position. By April, Fisker laid off more employees to conserve cash and hinted at filing for bankruptcy if financial support could not be secured. In May, the company ceased payments to the engineering firm behind its upcoming models, indicating deeper financial woes. Following a series of recalls and investigations in June, Fisker officially filed for Chapter 11 bankruptcy protection, reporting liabilities between $100 million and $500 million against assets of $500 million to $1 billion. In the aftermath, the company announced it would continue limited operations to manage customer relationships and vendor payments while exploring asset sales. Legal battles ensued over asset liquidation, and in July, a bankruptcy judge allowed the sale of over 3,000 Ocean SUVs. As the bankruptcy process unfolded, questions arose regarding the handling of outstanding recalls and financial obligations to creditors. The U.S. Securities and Exchange Commission also began investigating potential violations of federal securities laws tied to the company’s management practices. Despite attempts to salvage the situation, including salary cuts for founders Henrik and Geeta Fisker, the company faced further scrutiny over its internal practices and asset management. As of October 2023, Fisker's journey from a promising EV startup to a bankruptcy case serves as a stark reminder of the challenges in the volatile electric vehicle market, characterized by ambitious visions overshadowed by operational and financial missteps.