EV Startup Fisker Files For Bankruptcy After Years of Production Delays and Financial Struggles
The electric vehicle startup Fisker has filed for Chapter 11 bankruptcy protection after facing numerous issues that undermined its operations. In a comprehensive timeline, the events that ultimately led to this outcome are documented.
Fisker debuted its Ocean SUV in 2023 with aspirations of becoming a leader in the emerging EV market. However, production delays and quality control problems soon emerged. Repeated cuts to vehicle production targets indicated the company was struggling to meet consumer demand.
Underlying financial troubles began to show as well. Fisker struggled to hit internal sales goals and even sold convertible notes to raise operating funds. By late 2023, the annual production forecast had been slashed by 75%.
As vehicles reached customers, problems with braking, power loss and software glitches were reported. Several investigations were opened by federal safety regulators into these issues. Layoffs in early 2024 signaled the company was trying to cut costs as challenges mounted.
Engineering and production delays translated to millions of dollars in lost customer payments that took months to resolve. A partnership deal with a major automaker fell through, hindering another funding effort. With minimal cash on hand, Fisker halted Ocean production for over a month as bankruptcy loomed.
In its final days, Fisker founders took nominal $1 salaries in a desperate bid to keep operations going. However, after over a year of financial setbacks, vehicle issues and unsuccessful rescue efforts, bankruptcy filing became inevitable. The timeline shows how lofty ambitions were undermined by an inability to smoothly launch its first production vehicle.
While Fisker aimed high with the Ocean, the road to profitability proved rockier than anticipated. Growing pains are expected to some degree, but this comprehensive overview demonstrates how early missteps led the startup to file for bankruptcy protection after a challenging period.
