Fisker Inc.

Fisker Inc.
Company type	Public
Industry	Automotive
Predecessor	Fisker Automotive
Founded	October 3, 2016; 10 years ago in Manhattan Beach, California, United States
Founder	Henrik Fisker, Geeta Gupta-Fisker
Fate	Filed for Chapter 11 bankruptcy protection in 2024; restructuring agreement reached with creditors
Headquarters	Manhattan Beach, United States
Area served	United States, Canada, China, India (planned)
Key people	Henrik Fisker (Founder and CEO), Geeta Gupta-Fisker (President and CFO)
Products	Electric vehicles (Fisker Ocean SUV)
Website	www.fiskerinc.com

Fisker Inc. was a U.S.-based car manufacturer established in 2016 by Danish automotive designer Henrik Fisker and his spouse, Geeta Gupta-Fisker. The company, headquartered in Manhattan Beach, California, emerged as the successor to Fisker Automotive.

In 2020, Fisker announced plans for an initial public offering on the New York Stock Exchange through a merger with Spartan Energy Acquisition Corp, a special purpose acquisition company (SPAC) supported by Apollo Global Management. This reverse merger was finalized in the fall of that year. The firm developed and launched the Fisker Ocean, an electric SUV, which debuted in 2023.

By early 2024, Fisker encountered significant financial challenges resulting in its removal from the NYSE. The company defaulted on a $3.5 million short-term loan and publicly acknowledged serious doubts about its ability to continue operations. Subsequently, it downsized drastically by laying off most of its staff, shutting down its main office, and reducing the Ocean’s price substantially. In June, Fisker filed for Chapter 11 bankruptcy protection in U.S. court. The presiding judge permitted a delay in converting the case to Chapter 7 while allowing asset liquidation efforts to proceed. Later in October 2024, Fisker reached a restructuring agreement with its creditors under bankruptcy proceedings.

History

In 2007, Henrik Fisker partnered with Bernhard Koehler to establish Fisker Automotive, which produced the Fisker Karma. This model was introduced in 2008 and officially launched in 2011. Production ceased in 2012 following the bankruptcy of battery supplier A123 Systems, with approximately 2,000 units sold worldwide. In 2014, Wanxiang Group acquired the company’s assets and rebranded it as Karma Automotive, while Henrik Fisker retained ownership of the Fisker brand name.

On October 3, 2016, Henrik Fisker and Geeta Gupta-Fisker founded Fisker Inc., appointing Geeta as president and chief financial officer. On July 8, 2020, Fisker secured $50 million through Series C funding led by Moore Strategic Ventures under Louis Bacon.

On July 13, 2020, Fisker announced a valuation of $2.9 billion following a SPAC merger with Spartan Energy Acquisition Corp. (NYSE:SPAQ), which Apollo Global Management backed. By September 2020, the company inaugurated a technology center in San Francisco dedicated to software development and vehicle electronics. In October of the same year, Fisker established its global headquarters in Manhattan Beach, California. The reverse merger concluded on October 29, 2020, resulting in Fisker's listing on the New York Stock Exchange under ticker symbols FSR, FSRN, or FSRNQ until April 2024.

Fisker's shares were included in the Russell 3000 Index starting June 28, 2021. In July 2021, the company invested $10 million into an electric vehicle charging firm through private investment in public equity (PIPE).

In 2022, Fisker announced plans to open its first Indian subsidiary—a global technology center located in Hyderabad—and initiated recruitment efforts for approximately 300 software engineers. Additionally, it planned an Indian manufacturing facility for its PEAR model in collaboration with Foxconn aiming for an annual output of one million vehicles; however, this PEAR model never entered production.

By June 2023, Fisker disclosed intentions to begin vehicle manufacturing operations in China. Towards the end of that year, all necessary approvals were secured to market vehicles in Canada. In January 2024, it announced expansion plans to sell through dealerships alongside direct-to-consumer platforms.

To date, Fisker's only production model—the Ocean SUV—has encountered more than one hundred incidents involving loss of power and various technical defects after delivery. These issues triggered three investigations by the National Highway Traffic Safety Administration and led to several recalls.

Financial Challenges in 2024

In March 2024, Fisker disclosed a net loss surpassing $463 million for the 2023 fiscal year, leading to financial strain and a lack of sufficient capital to continue operations throughout the year. The company responded by reducing its workforce by 15% and halting development on the Pear compact electric vehicle. Fisker entered negotiations with a prominent automaker—believed to be Nissan—for a $400 million cash injection in exchange for rights to the Fisker Alaska pickup platform. Shortly thereafter, The Wall Street Journal reported that Fisker had engaged advisors to consider a possible Chapter 11 bankruptcy filing, which caused its stock value to decline by approximately 47%. Fisker promptly denied any immediate bankruptcy plans, highlighting ongoing discussions with another automotive partner.

Subsequently, Fisker paused vehicle production for six weeks to better control inventory levels and pursue strategic financing options, while cautioning that bankruptcy could occur within weeks. On March 25, 2024, negotiations with the major automaker fell through, and Fisker failed to fulfill requirements for a $150 million convertible bond lifeline. Trading of Fisker's shares was suspended, and the New York Stock Exchange announced plans to delist the company's stock; the delisting was finalized on April 22 after Fisker opted not to contest the decision.

On April 23, Fisker indicated that it might file for bankruptcy protection within a 30-day window if it could not meet its debt obligations or obtain creditor concessions. By May 8, Fisker's Austrian subsidiary initiated insolvency proceedings.

A TechCrunch article published on May 31, based on interviews with eight employees, exposed operational and financial mismanagement over recent years. The company faced difficulties in tracking payments, delayed internal audits, and provided incomplete documentation to external auditor PwC. CFO and COO Geeta Gupta-Fisker introduced a chatbot-based customer service platform that proved inadequate for demand, leading to engagement with a third-party service provider who later sued Fisker over approximately $660,000 in unpaid fees. Cost reduction efforts involved avoiding stockpiling parts and neglecting supplier quality inspections, which resulted in inferior vehicle components. To sustain service operations, Fisker reportedly removed parts from supplier Magna Steyr’s production line and marketing vehicles—including CEO Henrik Fisker's own Ocean SUV. Multiple suppliers have initiated legal claims over unpaid invoices related to engineering work on the Pear and Alaska models.

In late March, employees were informed about an impending loss of access to the Manhattan Beach headquarters, causing internal unrest before an extension was granted. Delays in vehicle registration left customers without permanent license plates for several months. Owners of the limited edition Ocean One—5,000 units sold—were owed $37.5 million in unpaid benefits. To clear excess inventory following loss of storage access, Fisker offered sales staff $1,000 bonuses per vehicle sold directly and established consignment-based dealership agreements. Matthew DeBord, Fisker's vice president of communications, denied many of these claims.

Bankruptcy Proceedings

On June 17, 2024, Fisker filed for Chapter 11 bankruptcy protection in Delaware, reporting liabilities ranging from $100 million to $500 million and assets between $500 million and $1 billion. The company attributed this action primarily to the breakdown of potential deal negotiations with a major automaker. Fisker intends to repay creditors throughout the restructuring process.

In July, a bankruptcy court judge approved the sale of remaining Fisker Ocean vehicles to New York leasing firm American Leasing for $46.25 million—approximately $14,000 per vehicle. By August, the U.S. Bankruptcy Court delayed conversion of the case to Chapter 7 while Fisker proceeded with asset liquidation efforts. The Fisker Owners Association (FOA), representing vehicle owners’ interests, successfully secured continued access to essential intellectual property and cloud-based software necessary for over-the-air updates to maintain vehicle safety and functionality. In October, American Leasing committed an additional $2.5 million toward technical support for ongoing software updates. Under the terms of bankruptcy, ownership of Fisker's intellectual property is being transferred to creditors.

Fisker Ocean

Introduced on March 18, 2019, the Fisker Ocean is a fully electric SUV initially scheduled for release in 2021. It was the first of three planned mass-market EVs designed by Henrik Fisker, with initial production aimed at the U.S. market. The base model offered an estimated driving range near 300 miles and came in both front-wheel and all-wheel drive variants. Its power source consisted of an approximately 80 kWh lithium-ion battery pack complemented by a solar panel roof that functioned as a range extender.

The Ocean highlighted environmental responsibility by incorporating a significant amount of recycled materials and integrating renewable energy features. Fisker marketed this SUV as an eco-conscious yet technologically advanced option, targeting consumers interested in sustainable transportation alternatives.

Fisker Pear

The Pear was conceived as a compact electric vehicle for urban use, with an anticipated U.S. price point of $29,900 before tax credits and incentives. Production was planned at Foxconn’s facility in Lordstown, Ohio, utilizing the MIH EV platform and aiming for an annual output of 250,000 units. However, by October 2024, the Pear project was discontinued following Fisker’s bankruptcy filing.

Fisker Ronin

On August 3, 2023, Fisker showcased the Ronin, a prototype sports car.

Fisker Alaska

Also revealed on August 3, 2023, the Alaska prototype represented Fisker’s entry into the pickup truck segment.

Nanotechnology collaboration that did not succeed

In 2016, Fisker Inc. entered into a partnership with Nanotech Energy to establish Fisker Nanotech, aiming to develop innovative graphene-based supercapacitors for battery applications. This hybrid battery concept promised superior energy transfer, quicker charging times, and longer lifespan compared to conventional lithium-ion batteries. Despite these ambitions, the collaboration ended in July 2017 without resulting in commercial products.

Solid-state battery research efforts that were discontinued

Fisker Inc. announced on November 13, 2017, that it had filed patents related to flexible solid-state battery designs with plans for mass production by 2023. A prototype featuring LG Chem’s 21700 NCM cells was presented at the 2018 Consumer Electronics Show. The development team included Fabio Albano, co-founder of Sakti3—a solid-state battery startup acquired by Dyson in 2015. Solid-state batteries offer potential advantages such as increased energy density and faster charging compared to traditional lithium-ion cells.

In October 2018, funding from Caterpillar Venture Capital was secured to further develop this technology. Nevertheless, by 2021, Fisker ceased solid-state battery development after failing to achieve practical results, as confirmed by founder Henrik Fisker.

External links

Henrik Fisker website