Fisker Experiences Months-Long Loss of Track on Millions in Customer Payments

Fisker, an electric vehicle (EV) startup, faced significant challenges as it scaled up deliveries, leading to a temporary loss of track of millions of dollars in customer payments, according to sources familiar with the internal payment crisis. The disorganization resulted from lax internal procedures for tracking transactions, including down payments and full vehicle payments. Some vehicles were delivered without collecting any payment at all, and checks were not cashed in a timely manner or were lost altogether.

The internal audit, initiated in December, aimed to address these issues, while the outside auditor PwC requested additional documentation about vehicle sales for the annual financial report. Fisker struggled to provide satisfactory documentation, leading to delays in financial reporting.

The inability to accurately track revenue generation contributed to Fisker’s challenges, including production pauses for its only vehicle, the Ocean SUV, and quality problems impacting customer support. Facing potential bankruptcy, Fisker’s shares were delisted from the New York Stock Exchange, making it difficult to raise funds to sustain operations. In response, the company reduced prices on its remaining inventory.

Representatives for Fisker and PwC did not provide comments on the matter.