Fisker is in an Ocean of trouble

EV-startup Fisker yesterday said it will no longer be providing 24/7 roadside assistance to US customers, yet another toll of its death-knell bell as the company faces looming bankruptcy.

And while Fisker may be circling the toilet, this drain doesn’t lead to the Ocean – in fact, it came from it.

The history

Fisker launched in 2016, a few years after founder Henrik Fisker’s former startup, Fisker Automotive, went bankrupt.

The new venture was able to attract early investors, and, in 2020, went public via SPAC. At the time, the company was valued at ~$2.9 billion and projected revenue of $13 billion by 2025.

But a slew of software, supply chain, and regulatory problems meant the company’s first model, the Fisker Ocean, didn’t start being delivered until about a year ago.

And, once unveiled, the public reception… wasn’t great. Popular YouTuber Marques Brownlee referred to the Ocean as the worst car he’s ever reviewed.

• The sales figures seem to agree: Fisker made ~10,200 EVs last year, but only delivered 4,900 of those.

Magic 8-ball says trouble is ahead. Fisker ceased all production in mid-March, while entering into negotiations with "a large automaker" to receive a financial lifeline – but those talks fell through. Since then, the EV-maker has laid off more than 15% of its staff and raised “substantial doubt” over its ability to continue operations.

Bottom line: Building a car company from scratch is hard – just ask Lordstown and Arrival.