Henrik Fisker envisioned a booming electrical automobile empire at his eponymous startup, which might be led by the Ocean SUV. However nearly as quickly as Ocean hit the highway in 2023, cracks started to appear in that imaginative and prescient.
Fisker repeatedly minimize manufacturing targets, missed gross sales targets and laid off workers. What’s extra, its Ocean SUV was affected by software program and mechanical points that left some folks unable to function it. Add to {that a} laundry checklist of troublesome braking, sudden energy outages and incapacity to open, and the issues led to quite a few security investigations and finally a halt to manufacturing to lift new funds.
All these elements and extra pressured Fisker to file for Chapter 11 chapter safety, marking the start of an ominous interval for the eponymous startup. This is a timeline of occasions that led the automaker so far.
2023
Fisker misses second-quarter manufacturing goal
July 7 — The automaker produced 1,022 Ocean SUVs within the second quarter of 2023, a whole lot lower than it anticipated to supply 1,400 to 1,700 electrical autos.
Fisker sells convertible notes to fund working unit
July 10 — Fisker introduced plans to promote $340 million in convertible bonds, with anticipated internet proceeds of $296.7 million. The automaker stated it plans to make use of the funds to help its basic company operations and add a further battery pack manufacturing line to “help development in 2024 and past.” The corporate stated the funds may even be used for capital expenditures and future product improvement.
Manufacturing goal lowered
December 1 — Fisker minimize annual manufacturing steering to unlock $300 million in working capital. The corporate stated it expects to supply about 10,000 autos by 2023.
2024
Fisker strives to satisfy inner gross sales objectives
January 1 — Fisker is much from its publicly said aim of delivering 300 electrical SUVs per day globally. The electrical automobile startup spent a lot of December working towards an inner gross sales goal of 100 to 200 autos per day in North America, the place a lot of the firm’s stock and gross sales efforts are concentrated. Fisker falls properly in need of that aim, usually promoting just one to 2 dozen Ocean SUVs a day.
Ocean SUV underneath investigation over brake failure complaints
January 15 – Federal security regulators have launched an investigation into braking points in Fisker’s first electrical automobile. House owners have filed 19 complaints with the U.S. Nationwide Freeway Visitors Security Administration (NHTSA), together with issues with brake failure, shifter points, the driving force’s facet door not having the ability to be opened from contained in the automobile, and two circumstances of auto hoods abruptly flying off on the freeway. incident.
For months, house owners have complained about sudden energy outages and braking points.
February 9 — Prospects have reported greater than 100 separate outages because the first Fisker Ocean SUVs had been delivered. The corporate advised TechCrunch it believes the problems are uncommon and has addressed “nearly all of them” via software program updates. Prospects additionally reported a sudden lack of braking capability, defective keychains inflicting them to be locked in or out of the automobile, seat sensors failing to detect the driving force’s presence, and the SUV’s entrance hood abruptly flying off at excessive speeds.
FBI launches second investigation into Ocean SUV after complaints about folding bikes
February 16 — The Nationwide Freeway Visitors Security Administration (NHTSA) has launched a second investigation into Fisker’s Ocean SUV after receiving 4 complaints that the SUV by chance rolled sideways and injured one individual. The corporate advised TechCrunch it’s “totally cooperating” with safety businesses.
Fisker lays off 15% of workers
February 29 — Fisker introduced plans to chop 15% of its workforce and stated it could not have sufficient money readily available to outlive the following 12 months. The corporate stated it was working to seek out methods to lift capital to transition from a direct gross sales mannequin to a supplier mannequin.
Manufacturing halted, solely $121 million left in financial institution
March 18 — Fisker introduced it would pause manufacturing of its electrical Ocean SUV for six weeks in a bid 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, of which $32 million was restricted or unavailable for rapid use. Fisker additionally stated that its accounts payable steadiness is as excessive as $182 million, and there’s “important doubt” that it will possibly proceed to function with out elevating new capital.
Fisker loses Nissan deal, placing rescue funds in danger
March 25 — Talks between Fisker and a serious automaker, reportedly Nissan, over potential funding and collaboration have ended, a improvement that places one other near-term rescue funding effort in jeopardy. Fisker revealed in a regulatory submitting that the automaker terminated negotiations on March 22. However the firm should proceed negotiations as a part of a possible $150 million convertible word deal.
New York Inventory Trade suspends buying and selling
March 25 — The New York Inventory Trade suspended buying and selling in Fisker inventory and moved to take away the corporate from the trade as a result of it was “now not appropriate for itemizing” attributable to “unusually low” worth ranges.
Fisker loses hundreds of thousands of {dollars} in buyer funds for months
March 27 — Fisker briefly misplaced information of hundreds of thousands of {dollars} in buyer funds because it scaled up deliveries, inflicting an inner audit that started in December to take months to finish. Fisker has had problem protecting tabs on the transactions, which embrace down funds and, in some circumstances, the complete worth of the automobile, due to lax inner procedures for monitoring these transactions, in response to three folks aware of the interior funds disaster. In a couple of circumstances, it even delivered autos with out gathering any type of fee, they stated.
New spherical of layoffs to ‘protect money’
April 29 — Fisker is shedding extra workers to “protect money,” following a plan introduced every week in the past, in response to an inner e-mail seen by TechCrunch. If Fisker is unable to lift the capital, it’s anticipated to hunt chapter safety inside the subsequent 30 days, in response to regulatory filings with the U.S. Securities and Trade Fee.
Fisker Inflexible Engineering
Might 3 – Fisker entered the red-hot pickup truck market by halting funds to the engineering agency that helped develop Pear and Alaska, low-cost electrical autos for the plenty. The corporate additionally accuses Fisker of wrongfully holding mental property rights associated to the autos.
Fisker Marine faces fourth federal security investigation
Might 10 — NHTSA has launched its fourth investigation into the Fisker Ocean SUV, wanting into a number of allegations of “unintentional computerized emergency braking.” The eight complaints allege that house owners skilled sudden activation of the automated emergency braking system when there have been no different autos or obstacles within the path of their vehicles.
Tons of of workers laid off to maintain electrical automobile startup afloat
Might 29 — Tons of extra workers had been laid off within the final week of Might to remain afloat, and the automaker remains to be searching for funding, acquisitions or making ready for chapter. One present worker and one laid-off worker estimated that solely about 150 folks stay on the firm.
The within story of Fisker’s collapse
Might 31 — Fisker’s path to final destruction might have begun with its flawed Ocean SUV, which was riddled with mechanical and software program issues. Nevertheless it was fraught with conceitedness, energy struggles and repeated failures to ascertain primary processes which might be basic to any automaker.
Ocean SUV first recall
June 12 — Fisker is recalling its Ocean SUV for the primary time attributable to a warning gentle challenge, in response to new information from NHTSA. The dashboard shows brake, parking and anti-lock braking system warning lights within the unsuitable font measurement and generally within the unsuitable coloration, making them inconsistent with federal motorcar security requirements. The company additionally stated, “A number of warning lights didn’t illuminate throughout the ignition cycle.”
Fisker recordsdata for chapter
June 18 — After a yr of struggling to remain afloat, Fisker filed for Chapter 11 chapter safety. The California-based firm has been searching for a take care of one other automaker as a last-ditch effort to save lots of the enterprise. The corporate has estimated property of $500 million to $1 billion and liabilities of $100 million to $500 million, in response to the submitting.
Fisker failed as a result of it wasn’t able to be a automobile firm
June 18 — Following the chapter, Fisker stated it will proceed “decreased operations,” together with “buyer retention plans and compensating wanted suppliers on a going-forward foundation.” In different phrases, it would proceed to handle the underlying enterprise if there’s a prepared purchaser for the property it sells within the Chapter 11 case.
Fisker confronted monetary difficulties as early as August 2023
June 21 — Fisker confronted “potential monetary misery” as early as August 2023, in response to a brand new submitting in Chapter 11 chapter proceedings. make investments.
Battle over Fisker property has heated up
June 21 — The battle over Fisker’s property has been filed simply days after it filed for chapter safety, with a lawyer claiming the startup has been liquidating property “outdoors of court docket supervision.” At challenge is Fisker’s relationship with its largest secured lender, which lent Fisker greater than $500 million in 2023 as the corporate’s monetary troubles loomed.
Fisker asks chapter court docket to promote electrical vehicles for about $14,000 every
If a Delaware Chapter Courtroom choose approves Fisker’s request to promote remaining stock to a New York automobile rental firm, the automaker would have the ability to promote 3,231 completed electrical autos for $46.25 million, or about $14,000 per automobile. .
Henrik Fisker and Geeta Gupta-Fisker take pay minimize to $1
Henrik Fisker and his spouse, Fisker co-founder Geeta Gupta-Fisker, minimize their salaries to $1 to fund the chapter proceedings of their failed electrical automobile startup. Along with the pay cuts, DiDonato stated in Tuesday’s submitting that Fisker will defer “sure severance pay, sure worker well being care advantages and automobile gross sales incentive bonuses” that haven’t but been paid.
