Fisker

Fisker Inc. was an American electric vehicle manufacturer founded in 2016 by Henrik Fisker and Geeta Gupta-Fisker.⁶¹¹ The company went public via a SPAC merger in 2020 valued at $2.9 billion and began delivering its Ocean SUV in 2023.⁶¹¹ Fisker filed for Chapter 11 bankruptcy protection on June 17, 2024, after facing production issues, safety investigations, and financial distress.¹²³¹³

Timeline

Money raised

Fisker raised $50 million in a Series C funding round in July 2020, led by Moore Strategic Ventures, at a valuation of $2.9 billion.⁶ The SPAC merger with Spartan Energy Acquisition Corp included a $500 million PIPE at $10 per share.⁶ Fisker announced plans to sell $340 million in convertible debt in July 2023, expecting net proceeds of $296.7 million.¹ In March 2024, Fisker had $121 million in cash and cash equivalents, with $32 million restricted or not immediately accessible.¹ Fisker's accounts payable balance was up to $182 million as of March 2024.¹ Fisker estimated assets of $500 million to $1 billion and liabilities of $100 million to $500 million in its bankruptcy filing.¹ Fisker's largest secured lender loaned the company more than $500 million in 2023.¹ Fisker received approval to sell 3,231 finished EVs for $46.25 million, approximately $14,000 per vehicle.¹

Investors named in the sources: Moore Strategic Ventures⁶, Strategxy Ventures LLC⁶, AllianceBernstein¹¹, BlackRock Inc.¹¹, Apollo Global Management⁶.

What happened

Fisker Inc. was founded in 2016 by Henrik Fisker and Geeta Gupta-Fisker.⁶¹¹ The company aimed to operate an asset-light business model using contract manufacturers.¹¹ Fisker partnered with Magna Steyr in Austria to manufacture the Ocean SUV.⁶⁷ In July 2020, Fisker raised $50 million in a Series C round led by Moore Strategic Ventures at a $2.9 billion valuation.⁶ Fisker announced a merger with Spartan Energy Acquisition Corp, a SPAC backed by Apollo Global Management, in July 2020.⁶

The SPAC merger included a $500 million PIPE at $10 per share and was completed on October 29, 2020, listing Fisker on the NYSE as FSR.⁶ Fisker reported a third quarter 2021 loss of $109.6 million, more than double its second quarter loss.⁷ Fisker began delivering the Ocean SUV in 2023.¹ In Q2 2023, Fisker produced 1,022 Ocean SUVs, missing its target of 1,400 to 1,700 vehicles.¹ Fisker announced plans to sell $340 million in convertible debt in July 2023.¹

In December 2023, Fisker cut its annual production guidance to about 10,000 vehicles, a quarter of its earlier forecast.¹ Fisker struggled to meet internal sales goals, often selling only one to two dozen Ocean SUVs a day in North America in early 2024.¹ The NHTSA opened an investigation into Fisker Ocean braking problems in January 2024 after 19 complaints.¹ Customers reported more than 100 separate loss-of-power incidents in Fisker Ocean SUVs by February 2024.¹ The NHTSA opened a second investigation into the Ocean SUV in February 2024 after complaints of rollaway incidents.¹

Fisker announced layoffs of 15% of its workforce in February 2024 and said it likely did not have enough cash to survive the next 12 months.¹ In March 2024, Fisker announced a six-week production pause and disclosed it had $121 million in cash and cash equivalents.¹⁸ Negotiations with a large automaker, reported to be Nissan, over a potential investment were terminated in March 2024.¹ The New York Stock Exchange suspended trading of Fisker shares in March 2024 due to abnormally low price levels.¹ Fisker temporarily lost track of millions of dollars in customer payments due to lax internal procedures, according to three people familiar with the matter.¹

Fisker laid off more employees in April 2024 to preserve cash and expected to seek bankruptcy protection within 30 days if it could not raise funds.¹ Fisker stopped paying an engineering firm that helped develop the Pear and Alaska vehicles in May 2024.¹ The NHTSA opened a fourth investigation into the Ocean SUV in May 2024 regarding inadvertent Automatic Emergency Braking.¹ Hundreds more employees were laid off in late May 2024, leaving about 150 people at the company.¹ Fisker issued its first recall for the Ocean SUV in June 2024 due to noncompliant warning lights.¹

Fisker filed for Chapter 11 bankruptcy protection on June 17, 2024.¹²³¹³ In its bankruptcy filing, Fisker estimated assets of $500 million to $1 billion and liabilities of $100 million to $500 million.¹ A filing in the bankruptcy case revealed Fisker was facing potential financial distress as early as August 2023.¹ Fisker's largest secured lender loaned the company more than $500 million in 2023.¹ Fisker asked the bankruptcy court to approve the sale of 3,231 finished EVs for $46.25 million in July 2024.¹

Henrik Fisker and Geeta Gupta-Fisker reduced their salaries to $1 in July 2024 to keep bankruptcy proceedings funded.¹ A bankruptcy judge approved the sale of more than 3,000 Ocean SUVs to a vehicle leasing company for up to $46.25 million on July 16, 2024.¹ Fisker intended to use Chapter 11 to facilitate an orderly and efficient liquidation of its assets.¹³ The Bankruptcy Court granted Fisker authority to use cash collateral and pay employee wages and benefits in the ordinary course.¹³ Fisker said it would continue reduced operations, including preserving customer programs and compensating needed vendors on a go-forward basis.¹

The office of the U.S. Trustee objected to a deal that would keep Fisker's bankruptcy proceeding alive and pave the way for paying back creditors.¹ Fisker faced financial distress as early as August 2023, which drove it to solicit a partnership or investment from another automaker.¹ Fisker's Ocean SUV was beset with software and mechanical issues, rendering it inoperable for some owners.¹ Fisker cut production targets multiple times, failed to meet sales goals, and laid off staff.¹ Fisker's Ocean SUV faced multiple safety investigations, including for braking problems, rollaway incidents, and inadvertent automatic emergency braking.¹

Fisker paused production in March 2024 to raise new capital.¹ Fisker lost a potential deal with Nissan, which put a separate near-term rescue funding effort in danger.¹ Fisker was delisted from the NYSE due to abnormally low price levels.¹ Fisker lost track of millions of dollars in customer payments for months, leading to an internal audit that started in December 2023.¹ Fisker laid off hundreds of workers in May 2024 in a bid to stay alive.¹

Fisker issued its first recall for the Ocean SUV in June 2024.¹ Fisker filed for Chapter 11 bankruptcy protection on June 17, 2024, marking the beginning of an inauspicious period for the startup.¹ Fisker's bankruptcy filing estimated assets of $500 million to $1 billion and liabilities of $100 million to $500 million.¹ Fisker's largest secured lender loaned the company more than $500 million in 2023.¹ Fisker asked the bankruptcy court to sell its remaining inventory of 3,231 finished EVs for $46.25 million.¹

Henrik Fisker and Geeta Gupta-Fisker lowered their salaries to $1 to keep the bankruptcy proceedings funded.¹ A bankruptcy judge approved the sale of more than 3,000 Ocean SUVs to a vehicle leasing company for up to $46.25 million.¹

Legal outcomes

• pendingThe NHTSA opened an investigation into Fisker Ocean braking problems in January 2024.¹
• pendingThe NHTSA opened a second investigation into the Ocean SUV in February 2024 after complaints of rollaway incidents.¹
• pendingThe NHTSA opened a fourth investigation into the Ocean SUV in May 2024 regarding inadvertent Automatic Emergency Braking.¹
• filedFisker filed for Chapter 11 bankruptcy protection on June 17, 2024.¹²³¹³
• filedThe office of the U.S. Trustee objected to a deal that would keep Fisker's bankruptcy proceeding alive.¹
• filedFisker's engineering firm accused Fisker of wrongfully holding on to IP associated with the Pear and Alaska vehicles.¹

Where the founders are now

Henrik Fisker and Geeta Gupta-Fisker reduced their salaries to $1 in July 2024 to keep the bankruptcy proceedings funded.¹

Sources

1. The fall of EV startup Fisker: A comprehensive timeline | TechCrunch, TechCrunch, 2025-08-30
2. EV startup Fisker files for bankruptcy, aims to sell assets, reuters.com, Jun 17, 20
3. Fisker files for bankruptcy protection in wave of EV startups, moment of déjà vu for its founder, CNBC, Jun 18, 20
4. Fisker's Implosion: Why It Happened, wardsauto.com, Jun 20, 20
6. Fisker Valuation, Funding & Investors | Multiples, multiples.vc, 5 days ago
7. Fisker Suffers Deeper Losses Ahead of Its Ocean EV Debut, dot.LA, 2021-11-03
8. EV startup Fisker to raise funds, pause production after ..., reuters.com, May 13, 20
11. Fisker Pitch Deck — Best Pitch Deck, Best Pitch™
13. Fisker chapter 11 filing, Davis Polk, Jun 25, 20

How this case file was put together

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