Fisker, a California-based electric car company, is facing a dire financial situation, as it announced in a regulatory filing that it expects to file for bankruptcy within the next 30 days if it cannot get relief from its creditors or raise additional cash. The company missed an $8.4 million interest payment in March, leading to a default on that loan. To avoid the worst-case scenario, Fisker is cutting costs by reducing its workforce and streamlining operations, including reducing its physical footprint.
The struggles for Fisker have been ongoing, as the startup has been dealing with problematic vehicles and slow sales since it started selling cars last year. In February, the company warned that it could run out of money within 12 months and planned to cut 15% of its staff while pausing development of future vehicles. Despite seeking help from established car manufacturers like Nissan, talks ultimately fell through. Fisker was also delisted from the New York Stock Exchange due to an “abnormally low” share price, further exacerbating its financial woes.
In an effort to generate cash, Fisker slashed prices for its Ocean SUV by up to $24,000. Although the company began delivering the SUV in the U.S. in 2023, sales struggled to ramp up. Fisker recently hired a Chief Restructuring Officer, signaling its current financial predicament. The decline of the company has left Ocean owners in a difficult situation, with their vehicles depreciating significantly in value overnight. The potential for bankruptcy raises concerns about whether owners will be able to get their vehicles serviced in the future.
While some Ocean owners have expressed satisfaction with their vehicles, there have been reports of nagging software bugs and more serious issues. The National Highway Traffic Safety Administration is investigating various problems with the vehicles, adding to the challenges facing Fisker. Despite the current difficulties, there remains a possibility that Fisker could find a partnership to help it overcome its financial struggles. However, time is running out for the electric car company, and the future remains uncertain for Fisker owners, employees, and former employees.
