EV maker Fisker pauses production for 6 weeks amid ongoing struggles

World News

Electric vehicle manufacturer Fisker, a second company of its kind launched by famed car designer Henrik Fisker, announced Monday it will pause production for six weeks as it seeks to avoid potentially going bankrupt amid mounting financial woes.
The production pause comes as the electric vehicle manufacturer attempts to avoid potential bankruptcy. COPYRIGHT 2021 THE ASSOCIATED PRESS. ALL RIGHTS RESERVED.
Key facts
  • Fisker has secured an additional $150 million in funds from an existing investor, according to the news release.
  • The manufacturer is also in talks with a “large automaker” about a potential transaction, which could involve an investment in Fisker, a North American manufacturing deal or joint development of one or more electric vehicle platforms.
  • The electric vehicle maker will pause production beginning Monday for six weeks in an effort to improve its inventory.
  • Fisker reportedly hired restructuring advisers to assist with a potential bankruptcy filing, according to the Wall Street Journal.
Forbes valuation

We estimate Henrik Fisker and his wife, Geeta Gupta-Fisker, to be worth about $1.6 billion. The couple co-founded the EV startup in 2016. Both respectively own about 20% of the company.

Big number

1,300. That’s the number of vehicles Fisker has delivered globally since the start of 2024, producing 1,000 through March 15, according to the news release.

It has 4,700 vehicles in its inventory.

Key background

Henrik Fisker’s first vehicle company, Fisker Automotive, went bankrupt in 2013. The manufacturer, which produced a plug-in hybrid sports car dubbed the Fisker Karma, was sold to Wanxiang Group, a Chinese manufacturer, in 2014.

Three years after the first automotive company went bankrupt, the Fiskers announced the launch of their new EV startup, Fisker Inc., and raised more than $1 billion in a much-hyped October 2020 IPO.

But the company has struggled to keep up with demand and its 2023 Fisker Ocean has been subject to a software problem that has caused braking issues and prompted probes from the National Highway Traffic Safety Administration.

Earlier this month, CNN reported that the electric car maker announced during its fourth quarter earnings call there was “substantial doubt about Fisker’s ability to continue as a going concern” after losing $463.6 million during 2023’s fourth quarter.

During the call, the manufacturer announced it also plans to lay off 15% of its workforce.

This article was first published on forbes.com and all figures are in USD.

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