The Rise and Fall of Fisker: A Timeline of Mismanagement and Missed Opportunities

Henrik Fisker once dreamed of building a thriving electric vehicle empire with his namesake startup, centered around the Ocean SUV. However, that vision began to crumble almost immediately after the Ocean hit the roads in 2023.

Fisker repeatedly cut production targets, failed to meet sales goals, and laid off staff. The Ocean SUV was plagued with software and mechanical issues, including troublesome brakes, sudden power loss, and doors that wouldn't open, leading to multiple safety investigations by the NHTSA. These problems forced a pause in production as the company scrambled to raise new capital.

Ultimately, Fisker filed for Chapter 11 bankruptcy protection, marking a stark end to its ambitious plans. Below is a detailed timeline of the events that led to its collapse.

2023: Early Signs of Trouble

Fisker Fell Short of Its Q2 Production Target

July 7 — The automaker produced only 1,022 Ocean SUVs in the second quarter, falling short of its target of 1,400-1,700 vehicles.

Fisker Sold Convertible Notes to Fund Operations

July 10 — Fisker announced plans to sell $340 million in convertible debt to support operations and future growth, expecting net proceeds of $296.7 million.

Production Target Cut

December 1 — Fisker reduced its annual production guidance to about 10,000 vehicles, a quarter of its original forecast, to free up $300 million in working capital.

2024: Escalating Crises

Fisker Struggled to Meet Internal Sales Goals

January 1 — The company failed to meet its goal of delivering 300 SUVs per day globally, often selling only one to two dozen daily in North America.

Ocean SUV Investigated Over Braking Loss Complaints

January 15 — The NHTSA opened an investigation into braking problems after 19 complaints, including issues with gear shifters and doors.

Owners Reported Power Loss and Brake Issues

February 9 — Customers reported over 100 incidents of sudden power loss and other defects, though Fisker claimed software updates resolved most issues.

Second NHTSA Probe for Rollaway Complaints

February 16 — A second investigation was launched after four complaints of the vehicle rolling away unexpectedly, resulting in one injury.

Fisker Laid Off 15% of Staff

February 29 — The company announced layoffs and admitted it might not have enough cash to survive the next 12 months, pivoting to a dealership model.

Pause in Production with Limited Cash

March 18 — Fisker paused production for six weeks with only $121 million in cash, citing substantial doubt about continuing operations.

Lost Nissan Deal

March 25 — Negotiations with a large automaker (reportedly Nissan) ended, jeopardizing a potential $150 million rescue funding.

Trading Suspended by NYSE

March 25 — The NYSE suspended trading of Fisker shares due to abnormally low prices, moving to delist the company.

Lost Track of Customer Payments

March 27 — An internal audit revealed Fisker misplaced millions in customer payments, with lax procedures leading to unpaid deliveries.

New Round of Layoffs

April 29 — More employees were laid off to preserve cash, with bankruptcy likely within 30 days without new funding.

Stopped Paying Engineering Firm

May 3 — Fisker halted payments to a firm developing future vehicles, accused of holding onto intellectual property.

Fourth NHTSA Safety Probe

May 10 — Another investigation was opened for inadvertent automatic emergency braking complaints.

Hundreds More Layoffs

May 29 — Additional layoffs left only about 150 employees as the company sought funding or a buyout.

Inside Fisker's Collapse

May 31 — Reports highlighted hubris, power struggles, and failure to establish basic automaker processes as key reasons for the downfall.

First Recall for Ocean SUV

June 12 — Fisker issued a recall for warning light issues, with noncompliant font sizes and colors.

Filed for Bankruptcy

June 18 — Fisker filed for Chapter 11 bankruptcy, estimating assets of $500 million to $1 billion and liabilities up to $500 million.

Early Financial Distress

June 21 — Bankruptcy filings revealed financial distress as early as August 2023, driving partnership searches.

Asset Fight Begins

June 21 — Creditors contested asset liquidation, with allegations of unsupervised sales.

Request to Sell EVs at Discount

July 3 — Fisker asked the court to approve selling 3,231 EVs for $14,000 each to raise $46.25 million.

Founders Reduce Salaries to $1

July 9 — Henrik and Geeta Fisker lowered their salaries to $1 to fund bankruptcy proceedings.

Objections to Fire Sale

July 15 — The U.S. Trustee objected to the EV sale deal, citing concerns over creditor repayments.

Sale Approved

July 16 — A judge approved the sale of over 3,000 Ocean SUVs, proceeding with liquidation.

Liquidation Questions

July 29 — Disputes arose over creditor priorities, with efforts to settle asset liquidation.

Recall Cost Reversals

September 18 — Fisker initially suggested owners pay for recall labor costs but reversed after backlash.

SEC Investigation

October 4 — The SEC opened an investigation into potential securities law violations, with subpoenas issued.

Abandoned Headquarters

October 5 — Fisker's HQ was left in disarray with hazardous waste, as reported by the landlord.

DOJ Declares Recall Plan Illegal

October 7 — The DOJ objected to making owners pay for recalls, deeming it illegal.

Fleet Sale Issues

October 8 — Problems with data transfer threatened the EV sale to American Lease.

Bankruptcy Plan Confirmed

October 16 — The court confirmed the liquidation plan after resolving recall costs and data issues, with a trustee appointed for asset sales.

2025: Aftermath

Nonprofit Wind-Down

Henrik and Geeta Fisker quietly shut down their charitable foundation, which had minimal impact and was dissolved after the bankruptcy.