Establishing any business is fraught with highs and many more lows. Henrik Fisker, a former and famed automotive designer, turned his attention to setting up his own automotive empire by establishing Fisker Automotive in 2007. The company raised over $1.5 billion in private and federal investment capital, which paved the way for the hybrid Fisker Karma, launched in 2012. By 2014, Fisker Automotive was defunct. Undeterred, Henrik Fisker then set his sights on the EV industry and launched Fisker Inc. in 2017.
Henrik Fisker’s ability to raise hundreds of millions of investment dollars is directed toward his latest venture, aimed at realizing the Fisker Ocean EV. The US stock market is buoyed by this American EV newcomer, and the company goes public in 2020, projecting $13 billion in revenue by 2025.
The Fisker Ocean launches in late 2022, attracting over 70,000 pre-orders and winning a design award. However, Fisker Inc. is burning through more cash than it is earning. By March 2024, Fisker Inc. is delisted from the stock market, a sign that bankruptcy is imminent.
Fisker is now slashing prices, offering over 40 percent off the retail price, as customers begin to cancel their pre-orders. In its latest earnings report, the company revealed that it manufactured over 10,000 EVs but only managed to deliver less than half.
Fisker Inc. was in talks with Nissan, but the discussions ended with no progress, pushing the company closer to the brink of bankruptcy. There are numerous reasons for Fisker Inc.’s current predicament, with slowing demand for EVs often cited as a significant factor.
However, recent software glitches with the Fisker Ocean have deterred potential buyers, and an undefined sales and marketing strategy are two other contributing factors. Timing is also a concern, along with pricing, compounded by competition from Tesla and Chinese EV makers who offer superior and more affordable alternatives.
There will always be casualties in the race to become the leader of a next-generation industry, and it seems Fisker Inc. will be one of many EV companies that don’t make it across the finish line. Nevertheless, at least Henrik Fisker made a good little earner; his net worth is currently valued at $1.1 billion. However, this will be substantially reduced should Fisker Inc. declare bankruptcy.
