Fisker encountered financial distress as early as last August

Fisker was facing “potential financial distress” as early as last August, according to a new filing in its Chapter 11 bankruptcy proceeding, initiated earlier this week. This admission sheds light on Fisker’s struggles throughout 2023 as it tried to increase deliveries of its flagship Ocean SUV, despite CEO Henrik Fisker’s public reassurances.

In August 2023, even as Fisker’s financial stability was deteriorating, the company hosted a “Product Vision Day” to showcase several new models in development, including a low-cost EV and an electric pickup truck. “Fisker isn’t standing still,” Henrik Fisker stated at the time. “We want the world to know that we have big plans and intend to move into several different segments, redefining each with our unique blend of design, innovation, and sustainability.”

As financial distress loomed, Fisker sought a partnership or investment from another automaker, as detailed in the filing by the startup’s chief restructuring officer. Negotiations with Nissan, which Reuters reported as the potential partner, lasted for months but ultimately failed earlier this year, placing Fisker in a “precarious position.” This failure led Fisker to halt production of the Ocean, conduct multiple rounds of layoffs, and begin the bankruptcy process.

The Chapter 11 proceedings aim to give Fisker some “breathing room” to “stabilize operations while pursuing an orderly and efficient liquidation of assets.” However, with numerous creditors and substantial debts, it remains uncertain whether Fisker will continue to operate in any meaningful capacity once its assets are liquidated.