From EV Empire to Financial Ruin: How Henrik Fisker’s Startup Crashed and Burned

Henrik Fisker’s ambitious electric vehicle (EV) startup was once hailed as a game-changer in the industry. However, a string of setbacks, production issues, and financial woes ultimately led to the company’s demise. In June 2024, Fisker filed for Chapter 11 bankruptcy protection, marking the beginning of the end for the eponymous startup.

The troubles began in 2023, when Fisker’s Ocean SUV failed to meet production targets, leading to a series of cuts and layoffs. The company’s sales goals were also unmet, and it struggled to keep up with demand. In July 2023, Fisker announced plans to sell $340 million in convertible debt to fund operations, but the funds were not enough to stem the tide of financial difficulties.

As the months went by, the issues continued to mount. In January 2024, Fisker’s Ocean SUV was investigated by federal safety regulators over complaints of braking problems, and the company was forced to pause production due to a lack of funding. The company’s financial situation continued to deteriorate, and in March 2024, Fisker laid off 15% of its staff in an effort to cut costs.

The company’s struggles were further exacerbated by a series of recalls and investigations into the Ocean SUV’s software and mechanical issues. In April 2024, Fisker issued a recall for the Ocean SUV due to problems with the warning lights, and the company was forced to deal with multiple investigations into the vehicle’s safety.

The financial difficulties continued to worsen, and in May 2024, Fisker announced that it had lost its Nissan deal, which had been a potential source of funding. The company’s stock price plummeted, and its market value dropped to nearly zero.

In June 2024, Fisker filed for Chapter 11 bankruptcy protection, citing financial distress and a need to restructure its operations. The company’s executives, including Henrik Fisker and his wife Geeta, took salary cuts to help keep the company afloat. However, the efforts were ultimately unsuccessful, and Fisker’s assets were put up for sale.

The bankruptcy proceedings were marked by a series of twists and turns, including a dispute over who would pay for the recalls and a disagreement between the company and its largest secured lender. However, in the end, the company was able to resolve its issues and confirm its liquidation plan.

As the dust settles on Fisker’s demise, it is clear that the company’s downfall was the result of a combination of factors, including production issues, financial difficulties, and a series of recalls and investigations. The company’s failure serves as a cautionary tale for startups in the EV industry, highlighting the importance of careful planning and execution in the pursuit of success.

In a final blow to the company, Fisker’s charitable foundation, which had been established by Henrik and Geeta Fisker in 2021, was shut down in 2025, with the pair citing a lack of resources and a need to focus on their own financial recovery.

The collapse of Fisker is a stark reminder of the challenges facing the EV industry, where companies are under pressure to deliver on ambitious production targets and meet the high expectations of investors and customers. As the industry continues to evolve, it is clear that companies will need to be more careful in their planning and execution if they hope to avoid a similar fate.