Henrik Fisker as soon as envisioned a burgeoning EV empire on the startup he named after himself, which was to be led by the Ocean SUV. However cracks began exhibiting in that imaginative and prescient virtually as quickly because the Ocean hit the highway in 2023.
Fisker reduce manufacturing targets a number of instances, failed to satisfy gross sales targets and laid off employees. What’s extra, its Ocean SUV was beset with software program and mechanical points, rendering it inoperable for some. Add troublesome brakes, sudden energy loss and doorways that wouldn’t open to the checklist of points that led to a number of security investigations and in the end a pause in manufacturing with the intention to increase new capital.
All of this and extra has compelled Fisker to file for Chapter 11 chapter safety, marking the start of an inauspicious interval for the eponymous startup. Beneath is a timeline of the occasions that led the automaker up to now.
2023
Fisker fell in need of its Q2 manufacturing goal
July 7 — The automaker produced 1,022 Ocean SUVs within the second quarter of 2023, a number of hundred autos quick of its expectation of manufacturing between 1,400 and 1,700 EVs.
Fisker bought convertible notes to fund operations
July 10 — Fisker introduced plans to promote $340 million in convertible debt, anticipating the web proceeds to be $296.7 million. The automaker stated it deliberate to make use of the funds to help its common company operations and add a further battery pack line to “help development” in 2024 and past. The corporate stated funds will even be used for capital expenditures and the event of future merchandise.
Manufacturing goal reduce
December 1 — Fisker reduce its annual manufacturing steerage in an effort to release $300 million in working capital. The corporate stated it anticipated to provide about 10,000 autos in 2023. The manufacturing steerage is only a quarter of Fisker’s bullish forecast from a 12 months in the past.
2024
Fisker struggled to satisfy inside gross sales targets
January 1 — Fisker remained removed from assembly its publicly said aim of delivering 300 electrical SUVs per day globally. The EV startup spent a lot of December aiming to satisfy an inside gross sales aim of between 100 and 200 autos a day in North America, the place the majority of its stock and gross sales efforts are. Fisker fell effectively under that concentrate on, usually promoting only one to 2 dozen of its Ocean SUVs a day right here.
Ocean SUV investigated over braking loss complaints
January 15 — Federal security regulators have opened an investigation into Fisker’s first electrical automobile over braking issues. House owners had lodged 19 complaints with the Nationwide Freeway Site visitors Security Administration (NHTSA) on points starting from brake loss to issues with the gear shifter to a driver door failing to open from the inside and two cases of the automobile’s hood abruptly flying up on the freeway.
House owners had flagged sudden energy loss and brake issues for months
February 9 — For the reason that preliminary fleet of Fisker Ocean SUVs have been delivered, prospects have reported greater than 100 separate loss-of-power incidents. The corporate advised TechCrunch it believes these issues are uncommon and that it has resolved “virtually all the problems” with software program updates. Clients have additionally reported sudden lack of braking energy, problematic key fobs inflicting them to get locked inside or exterior of the automobile, seat sensors that don’t detect the driving force’s presence and the SUV’s entrance hood abruptly flying up at excessive speeds.
Feds opened second probe into the Ocean SUV after rollaway complaints
February 16 — The NHTSA opened a second investigation into Fisker’s Ocean SUV after the company obtained 4 complaints in regards to the automobile rolling away unexpectedly, leading to one harm. The corporate advised TechCrunch it’s “totally cooperating” with the protection company.
Fisker laid off 15% of employees
February 29 — Fisker introduced its plan to put off 15% of its workforce and says it probably doesn’t have sufficient money readily available to outlive the following 12 months. The corporate says it’s looking for a option to increase that cash as it really works via a pivot from direct gross sales to a dealership mannequin.
Pause in manufacturing with simply $121 million within the financial institution
March 18 — Fisker introduced it could pause manufacturing of its electrical Ocean SUV for six weeks because it scrambles for a money infusion. The corporate stated in a regulatory submitting that it had simply $121 million in money and money equivalents as of March 15, $32 million of which is restricted or not instantly accessible. Fisker additionally stated that its accounts payable stability is as much as $182 million and that there’s “substantial doubt” that it may proceed operations with out elevating new capital.
Fisker misplaced Nissan deal, placing rescue funds in danger
March 25 — The negotiations between Fisker and a big automaker — reported to be Nissan — over a possible funding and collaboration have been terminated, a growth that places a separate near-term rescue funding effort at risk. Fisker revealed in a regulatory submitting that the automaker terminated the negotiations March 22. It didn’t clarify why. However the firm needed to preserve the negotiations going as a part of one of many closing situations for a potential $150 million convertible notice.
Buying and selling suspended by NYSE
March 25 — The New York Inventory Change suspended buying and selling shares of Fisker and moved to take the corporate off its inventory alternate, as a result of it’s “now not appropriate for itemizing” due to “abnormally low” worth ranges.
Fisker misplaced observe of hundreds of thousands of {dollars} in buyer funds for months
March 27 — Fisker briefly misplaced observe of hundreds of thousands of {dollars} in buyer funds because it scaled up deliveries, resulting in an inside audit that began in December and took months to finish. Fisker struggled to maintain tabs on these transactions, which included down funds and in some instances, the complete worth of the autos, due to lax inside procedures for holding observe of them, in accordance with three individuals accustomed to the interior cost disaster. In a couple of instances, it delivered autos with out accumulating any type of cost in any respect, they stated.
New spherical of layoffs to ‘protect money’
April 29 — Fisker laid off extra workers to “protect money,” making good on a plan introduced one week earlier than, in accordance with an inside electronic mail seen by TechCrunch. Fisker expects to hunt chapter safety throughout the subsequent 30 days if it may’t give you that cash, in accordance with a U.S. Securities and Change Fee regulatory submitting.
Fisker stiffed engineering agency
Might 3 — Fisker stopped paying the engineering agency that helped develop the Pear, a low-cost EV meant for the lots, and the Alaska, Fisker’s entry into the red-hot pickup truck market. The agency additionally accuses Fisker of wrongfully holding on to IP related to these autos.
Fisker Ocean confronted fourth federal security probe
Might 10 — The NHTSA opened a fourth investigation into the Fisker Ocean SUV to probe a number of claims of “inadvertent Computerized Emergency Braking.” The eight complaints allege that house owners skilled sudden activation of the Computerized Emergency Braking system in moments the place there have been no different autos or obstructions within the path of their automobiles.
Tons of of staff reduce to maintain EV startup alive
Might 29 — Tons of extra workers have been laid off throughout the last week of Might in a bid to remain alive, because the automaker continues to seek for funding, a buyout or put together for chapter. One present and one laid off worker estimated that solely about 150 individuals remained on the firm.
Inside Fisker’s collapse
Might 31 — The highway to Fisker’s final wreck might have began and ended with its flawed Ocean SUV, which was riddled with mechanical and software program issues. However it was paved with hubris, energy struggles, and the repeated failure to arrange fundamental processes which can be foundational for any automaker.
Ocean SUV issued first recall
June 12 — Fisker issued the primary recall for the Ocean SUV due to issues with the warning lights, in accordance with new data revealed by the NHTSA. The instrument panel shows the brake, park and antilock brake system warning lights within the improper font dimension and, at instances, within the improper shade, making them noncompliant with Federal Motor Car Security Requirements. The company additionally says “a number of warning lights fail to light up throughout the ignition cycle.”
Fisker filed for chapter
June 18 — After a 12 months of struggling to remain afloat, Fisker filed for Chapter 11 chapter safety. The California-based firm had been in search of a take care of one other automaker in a last-ditch effort to rescue the enterprise. The corporate estimated property of $500 million to $1 billion and liabilities of between $100 million and $500 million, in accordance with the submitting.
Fisker failed as a result of it wasn’t able to be a automotive firm
June 18 — Within the wake of its chapter, Fisker stated it’ll proceed “diminished operations,” together with “preserving buyer applications, and compensating wanted distributors on a go-forward foundation.” In different phrases, it’ll proceed to handle a bare-bones operation in case there’s a prepared purchaser of the property it’s placing up on the market within the Chapter 11 case.
Fisker confronted monetary misery as early as August 2023
June 21 — In line with a brand new submitting in its Chapter 11 chapter continuing, Fisker was dealing with “potential monetary misery” as early as August 2023. That looming monetary misery drove Fisker to solicit a partnership or funding from one other automaker, in accordance with the submitting.
The battle over Fisker’s property is already heating up
June 21 — The battle over Fisker’s property is already charged simply days into its chapter submitting, with one lawyer claiming the startup has been liquidating property “exterior the court docket’s supervision.” At subject is the connection between Fisker and its largest secured lender, which loaned Fisker greater than $500 million in 2023 at a time when the firm’s monetary misery was looming behind the scenes.
Fisker asks chapter court docket to promote EVs for about $14K every
If a choose within the Delaware Chapter Courtroom approves Fisker’s request to promote its remaining stock to a New York-based automobile leasing firm, the automaker would be capable to offload 3,231 completed EVs for $46.25 million, or round $14,000 per automobile.
Henrik Fisker, Geeta Gupta-Fisker drop salaries to $1
Henrik Fisker and his spouse, Fisker co-founder Geeta Gupta-Fisker, are decreasing their salaries to $1 with the intention to preserve their failed EV startup’s chapter proceedings funded. Along with the wage reductions, Fisker’s restructuring officer, John DiDonato, stated in Tuesday’s submitting that Fisker will defer “sure severance funds, sure worker healthcare advantages, and automobile sale incentive bonuses” that haven’t but been paid.
