Fisker's Downfall: A Complete Timeline of the EV Startup's Collapse

Fisker's Financial Struggles and Bankruptcy Filing

Henrik Fisker initially aimed to establish a thriving electric vehicle (EV) company bearing his name, with the Ocean SUV intended to spearhead its growth.

However, difficulties emerged shortly after the Ocean’s launch in 2023.

The company repeatedly lowered production forecasts and struggled to achieve its sales objectives, resulting in workforce reductions.

Challenges with the Ocean SUV

The Ocean SUV experienced a range of problems, including software glitches and mechanical failures, which left some vehicles unusable.

Specific issues reported included malfunctioning brakes, unexpected power loss, and doors that failed to open.

These concerns prompted multiple safety investigations and ultimately led to a production halt as the company sought additional funding.

Bankruptcy Protection

Due to these accumulating challenges, Fisker was compelled to file for Chapter 11 bankruptcy protection.

This filing signifies the start of a challenging phase for the company founded by Henrik Fisker.

The following timeline details the key events that culminated in this outcome. Recent updates are available at the end of this article.

2023

Fisker's Q2 Production Misses Expectations

July 7 – During the second quarter of 2023, the vehicle manufacturer completed the production of 1,022 Ocean SUVs. This figure represents a shortfall of several hundred units compared to the initially projected output range of 1,400 to 1,700 electric vehicles.

Funding Secured Through Convertible Note Sales

July 10 – Fisker revealed its intention to issue $340 million in convertible notes. Net proceeds from this sale are anticipated to total $296.7 million. These funds are earmarked to bolster the company’s overall corporate activities.

Expansion Plans Supported by Capital

The automaker also intends to utilize the capital to establish an additional battery pack assembly line. This expansion is designed to facilitate anticipated growth in 2024 and subsequent years. Further investment will be directed towards capital expenditures and the advancement of forthcoming product lines.

Revised Production Outlook

December 1 – In a move to liberate $300 million in working capital, Fisker adjusted its yearly production forecast downward. The company now anticipates the production of approximately 10,000 vehicles throughout 2023.

Significant Reduction from Previous Projections

This revised guidance represents a substantial decrease, amounting to only a quarter of the optimistic forecast Fisker presented just one year prior. The adjustment reflects a strategic realignment of resources and expectations.

2024

Fisker Faced Challenges in Achieving Sales Targets

January 1 — Fisker did not reach its projected daily sales figure of 300 electric SUVs on a global scale. Throughout December, the electric vehicle company focused on an internal North American sales objective of 100 to 200 vehicles daily, given the concentration of its inventory and sales activities in that region. However, actual sales frequently amounted to only one or two dozen Ocean SUVs per day.

Braking System Concerns Prompted Investigation of Ocean SUV

January 15 — Federal safety authorities initiated an investigation into Fisker’s inaugural electric vehicle due to reported braking malfunctions. A total of 19 complaints were submitted to the National Highway Traffic Safety Administration (NHTSA), detailing issues such as brake failure, gear shifter problems, a driver-side door that wouldn't open internally, and two instances of the vehicle’s hood unexpectedly lifting while driving.

Customers Reported Power Loss and Brake Issues for Several Months

February 9 — Since the first deliveries of Fisker Ocean SUVs, over 100 instances of unexpected power loss were documented by customers. The company communicated to TechCrunch that these occurrences were infrequent and largely addressed through software updates. Additionally, reports surfaced regarding sudden braking power loss, problematic key fobs causing vehicle access issues, seat sensors failing to detect occupants, and the SUV’s hood unexpectedly opening at highway speeds.

Second NHTSA Investigation Launched Following Rollaway Complaints

February 16 — The NHTSA commenced a second investigation into the Fisker Ocean SUV after receiving four reports of unintended vehicle rollaways, one of which resulted in an injury. Fisker affirmed to TechCrunch its full cooperation with the safety agency.

Workforce Reduction of 15% Announced by Fisker

February 29 — Fisker declared plans to reduce its workforce by 15%, acknowledging potential cash flow insufficiency to sustain operations for the next 12 months. The company stated its efforts to secure additional funding while transitioning from a direct sales model to a dealership network.

Production Halt Amidst Limited Financial Resources

March 18 — Fisker announced a six-week production pause for its Ocean SUV while seeking a financial injection. A regulatory filing revealed the company held $121 million in cash and equivalents as of March 15, with $32 million restricted or inaccessible. Fisker also reported accounts payable totaling $182 million and expressed “substantial doubt” regarding its ability to continue operations without new capital.

Potential Nissan Deal Collapses, Jeopardizing Funding

March 25 — Negotiations between Fisker and a major automaker – identified as Nissan – regarding a potential investment and partnership were terminated. This development threatened a separate, short-term funding initiative. Fisker disclosed in a regulatory filing that the automaker ended discussions on March 22, without providing a reason. Maintaining these negotiations was a prerequisite for a potential $150 million convertible note.

NYSE Suspends Trading of Fisker Shares

March 25 — The New York Stock Exchange suspended trading of Fisker shares and initiated proceedings to delist the company due to “abnormally low” stock prices.

Millions in Customer Payments Lost Track Of

March 27 — Fisker experienced a temporary inability to account for millions of dollars in customer payments during the scaling of deliveries. This led to an internal audit initiated in December that took months to complete. The company struggled to monitor these transactions, including down payments and full vehicle prices, due to inadequate internal tracking procedures. In some instances, vehicles were delivered without any payment received.

Further Layoffs Implemented to Conserve Cash

April 29 — Fisker implemented another round of layoffs to “preserve cash,” as previously announced. An internal email viewed by TechCrunch confirmed the reductions. The company indicated it may seek bankruptcy protection within 30 days if it fails to secure funding, as stated in a U.S. Securities and Exchange Commission filing.

Engineering Firm Left Unpaid by Fisker

May 3 — Fisker ceased payments to the engineering firm involved in developing the Pear, a budget-friendly EV, and the Alaska, Fisker’s pickup truck model. The firm also accused Fisker of improperly retaining intellectual property related to these vehicles.

Fourth Federal Safety Probe Launched for Fisker Ocean

May 10 — The NHTSA initiated a fourth investigation into the Fisker Ocean SUV, examining multiple reports of “inadvertent Automatic Emergency Braking.” Eight complaints described sudden activation of the system without any obstructions or vehicles present.

Significant Workforce Cuts to Sustain EV Startup

May 29 — Hundreds of additional employees were laid off in late May in an effort to remain operational while pursuing funding, a buyout, or preparing for bankruptcy. Estimates suggested only around 150 employees remained with the company.

Analysis of Fisker’s Downfall

May 31 — The ultimate failure of Fisker may have stemmed from the inherent flaws in its Ocean SUV, plagued by mechanical and software issues. However, these problems were compounded by excessive ambition, internal conflicts, and a consistent failure to establish fundamental processes essential for any automotive manufacturer.

First Recall Issued for Ocean SUV

June 12 — Fisker issued its first recall for the Ocean SUV due to issues with warning lights, as detailed in new information published by the NHTSA. The instrument panel displays brake, park, and antilock brake system warning lights in incorrect font sizes and colors, violating Federal Motor Vehicle Safety Standards. The agency also noted that “multiple warning lights fail to illuminate during the ignition cycle.”

Fisker Files for Bankruptcy Protection

June 18 — After a year of financial struggles, Fisker filed for Chapter 11 bankruptcy protection. The California-based company had been attempting to secure a deal with another automaker as a last-ditch rescue effort. The company estimated assets between $500 million and $1 billion and liabilities between $100 million and $500 million, according to the filing.

Fisker’s Bankruptcy Attributed to Premature Company Launch

June 18 — Following its bankruptcy filing, Fisker stated it would continue “reduced operations,” including maintaining customer programs and compensating essential vendors. The company intends to manage a minimal operation in anticipation of a potential buyer for its assets.

Financial Distress Recognized as Early as August 2023

June 21 — A new filing in its Chapter 11 bankruptcy case revealed that Fisker was facing “potential financial distress” as early as August 2023. This looming financial situation prompted Fisker to seek a partnership or investment from another automaker, according to the filing.

Competition for Fisker’s Assets Intensifies

June 21 — The battle for Fisker’s assets began quickly after the bankruptcy filing, with one lawyer asserting that the startup had been liquidating assets “outside the court’s supervision.” The dispute centers on the relationship between Fisker and its primary secured lender, which provided over $500 million in loans in 2023 during a period of known financial difficulties.

Fisker Proposes Selling EVs for Approximately $14,000 Each

July 3 — Fisker requested approval from a Delaware Bankruptcy Court to sell its remaining inventory to a New York-based vehicle leasing company, aiming to offload 3,231 finished EVs for $46.25 million, or roughly $14,000 per vehicle.

Fisker Executives Reduce Salaries to $1

July 9 — Henrik Fisker and his wife, Fisker co-founder Geeta Gupta-Fisker, reduced their salaries to $1 to help fund their failed EV startup’s bankruptcy proceedings. Additionally, Fisker’s restructuring officer, John DiDonato, announced in a Tuesday filing that the company would defer “certain severance payments, certain employee healthcare benefits, and vehicle sale incentive bonuses” that had not yet been paid.

Objection to Fisker’s EV Firesale

July 15 — The office of the U.S. Trustee, a division of the Department of Justice overseeing bankruptcy administration, objected to a deal that would sustain Fisker’s bankruptcy process and enable partial repayment to creditors.

Bankruptcy Judge Approves Sale of North American EVs

July 16 — A bankruptcy judge authorized Fisker to sell over 3,000 Ocean SUVs to a vehicle leasing company, generating a maximum of $46.25 million for the defunct EV startup. This approval clears the path for the remainder of Fisker’s bankruptcy process and the liquidation of its remaining assets.

Central Question in Fisker’s Bankruptcy

July 29 — A key question remains: does Heights Capital Management, the automaker’s loan secured lender, rightfully deserve priority in receiving proceeds from the liquidation?

Fisker Reverses Course on Recall Costs

September 18 — Initially, Fisker suggested it would cover the cost of recall parts, while owners would be responsible for labor. However, the company quickly reversed this decision, stating it would also cover labor costs.

SEC Launches Investigation

October 4 — The U.S. Securities and Exchange Commission revealed in a filing that it had opened an investigation into Fisker and might pursue legal action for violations of federal securities laws. The financial regulator informed the bankruptcy court that it had issued multiple subpoenas and was concerned about Fisker’s record preservation plan. (The bankrupt EV startup later addressed the SEC’s concerns, and the investigation’s status remains unknown.)

Abandoned Fisker HQ in Disarray

October 5 — The landlord of Fisker’s final headquarters in La Palma, California, reported the building was abandoned in “complete disarray,” with hazardous waste and full-size vehicle clay models left behind. The landlord’s filing described a chaotic few days during which Fisker employees and auction house representatives emptied the facility.

DOJ Challenges Fisker’s Recall Repair Plan

October 7 — The U.S. Department of Justice, representing the National Highway Traffic Safety Administration, informed the bankruptcy court that it considered Fisker’s attempt to shift recall labor costs to owners illegal. This objection ultimately led Fisker to change its position once more.

Fleet Buyer Hesitates on Completing Purchase

October 8 — Fisker presented a significant challenge to the bankruptcy court, stating that it doubted its ability to transfer necessary data to a new, non-Fisker server. American Lease revealed the issue in a filing and indicated it might not be able to finalize the sale, potentially jeopardizing Fisker’s settlement plan with creditors.

Fisker’s Bankruptcy Plan Confirmed

October 16 — Fisker successfully resolved the last-minute issues and obtained confirmation of its liquidation plan from the bankruptcy court. The company reversed its stance on recall labor costs, reached an agreement with American Lease regarding data transfer, and appointed a trustee to oversee the sale of remaining assets, including approximately $1 billion worth of equipment in Austria, where the Ocean SUVs were manufactured.

2025

Henrik Fisker's Nonprofit Foundation Ceases Operations

In late 2021, Henrik Fisker, alongside his wife Geeta – who concurrently served as CFO and COO of the Fisker company – founded a charitable organization.

This foundation was designed to foster innovation across several key areas, including healthcare, education, sustainability, and advancements in mobility.

Its stated mission was to support initiatives benefiting both the planet and the well-being of people and animals.

Limited Charitable Giving

However, an examination of tax records submitted to the IRS reveals that the foundation’s total charitable disbursements did not exceed approximately $100,000.

Subsequently, the foundation was formally dissolved.

Publicly available tax filings from 2025 document the complete winding down of the nonprofit entity by the couple.

• Key Areas of Focus: Healthcare, education, sustainability, and mobility.
• Founding Date: Late 2021
• Total Disbursements: Approximately $100,000 or less.

The decision to close the foundation represents a shift in priorities for Henrik and Geeta Fisker.