For the second time in a decade, Henrik Fisker’s automotive vision could end in bankruptcy.
Update 3/14/24: Fisker Inc. released a statement as follows:
“As a matter of company policy, Fisker does not comment on market rumors and
speculation. However, Fisker often works with outside advisors to help manage its
business and assist in developing and executing strategies. Fisker is focused on raising
additional capital and engaging in a strategic partnership with a large automaker. The
company is also continuing to pursue its shift to a Dealer Partnership model in both North
America and Europe. The leadership team is laser-focused on these efforts.”
After the automaker laid out its substantial financial hurdles and reports surfaced about partnership talks with another major manufacturer, Fisker Inc. has hired financial restructuring advisers to navigate Chapter 11 bankruptcy proceedings, according to a report by The Wall Street Journal. The pieces cites sources familiar with the matter, though the company declined to officially comment.
The EV startup reportedly brought in FTI Consulting and the law firm Davis Polk to prepare a potential bankruptcy filing, as Fisker Inc. continues to face an increasingly untenable situation among weaker-than-expected demand. To help rein in costs, it announced earlier this month it would cut 15% of its workforce.
As far as we know, the company is still in “advanced talks” with Nissan to both provide a financial lifeline and help right the company’s plan to build out its lineup with the Alaska pickup truck and the small Pear SUV, also citing anonymous people familiar with the negotiations. It is currently unclear where those talks stand, particularly if the company will imminently file for bankruptcy.
Fisker Inc.’s stock took a major hit after the WSJ piece, falling by 50% to $0.16 per share after the report published. That current price is down 80% from the start of 2024, which was itself a several-fold drop from the third quarter of 2023, where the company’s stock moved between $5.31 and $6.35 per share.
The original iteration of designer Henrik Fisker’s vision came in 2007, when he founded Fisker Automotive. That company produced the Fisker Karma, but suspended production in 2012 and declared bankruptcy in 2013, selling its assets off to Wanxiang Group, which renamed the company Karma Automotive (and currently builds the Karma Revero GT and GTS). Henrik Fisker founded Fisker Inc., the current entity, in October 2016, and announced the Magna Steyr-built Ocean SUV — the brand’s only model actually in production as of 2024 — in 2019.
