Fisker has acknowledged its dire financial situation after recently informing investors of its search for new partnerships and funding to stave off closure.
The EV startup has struggled to attract buyers for its vehicles and is now preparing for a potential bankruptcy filing. This would mark the second time Henry Fisker has faced failure in establishing a successful auto company.
Throughout 2023, Fisker garnered significant attention as it commenced deliveries of the Ocean SUV and outlined plans for additional EV models, including the electric pickup truck Alaska.
Despite the initial excitement surrounding the company, it has failed to generate sufficient interest in its electric vehicles. Despite Magna Steyr, its contract manufacturing partner, producing over 10,000 Fisker Ocean SUVs in 2023, only half of them were delivered to customers.
This challenging situation was acknowledged by Fisker during the Q4 2023 earnings call. With limited prospects for increasing vehicle sales and dwindling cash reserves, Fisker is reportedly preparing for potential bankruptcy. Recent reports indicate that Fisker sold EVs worth $273 million in 2023 while holding over $1 billion in debt.
Quality issues plaguing the Fisker Ocean, including two NHTSA investigations related to braking performance and unintended vehicle movement, have likely contributed to sluggish sales.
The vehicle experienced software bugs, as highlighted by YouTuber Marques Brownlee. These challenges have made it difficult for Fisker to sell the 5,000 vehicles currently in stock.
According to a Wall Street Journal report (paywall), Fisker has engaged restructuring advisors to explore the possibility of a bankruptcy filing.
While the EV startup has not officially commented on the report, it follows Fisker’s February warning to investors regarding its precarious financial position. Discussions with potential investors were initiated in an attempt to secure additional funding.
Rumors suggested that Fisker was in talks with Nissan to form a partnership to produce the electric pickup in Alaska in the US. However, given the current circumstances, it remains uncertain whether such a partnership will materialize.
If Fisker files for bankruptcy, it marks Henry Fisker’s second failed attempt to establish a viable car company. His first venture, Fisker Automotive, filed for bankruptcy in 2013 following inventory losses due to Hurricane Sandy. Subsequently, Henry Fisker founded Fisker Inc. in 2016, which now faces similar challenges.
