What happened to EV-maker Fisker that just got delisted from NYSE

Fisker Inc. he once compared himself to Apple.

CEO Henrik Fisker wanted his first EV, which had just been listed on the New York Stock Exchange, to be different. Just as Apple did by outsourcing its manufacturing to Foxconn, Henrik Fisker wanted to do the same with Austrian manufacturer Magna Steyr. And he said.

But now, none of that will matter because Fisker is facing a different problem – cashback.

What went wrong with the Danish auto designer’s eponymous company?

Early and early years

California-based Fisker was founded in 2016, after its predecessor Fisker Automotive folded a few years earlier.

At the time, Fisker said he hoped to invest in new technology that helped his company grow faster and produce cheaper electricity. SUVs. A market-leading challenger to Tesla, if things went well.

Meanwhile, as the EV craze is starting to catch fire, Fisker has been able to gather the attention of investors. to fall in space. Although Fisker came up with great design skills, it also had a difficult history because the first one failed. But his new company appeared promise in many of the EV and EV-adjacent industries that were racing to capture that niche in the late 2010s.

In 2020, the company he went public through a Special Purpose Acquisition Company (or SPAC) on the New York Stock Exchange. At the time, the company reported on revenue $13 billion by 2025 (it was before the money in 2020).

Bringing Fisker’s idea to market was the next challenge. The complexity of software, supply chain and control problems led to the first model of the company, Fisker Ocean, to start offering its cars to. a year ago.

Some of Fisker’s concerns hold true for the rest of the EV industry as demand slows, price competition increases and investor interest diminishes. Several EV industry players have folded due to these storms, including Arrival and Lordstown. But Fisker’s strategic decisions—including shifting its sales network from a direct-to-consumer brand—have only made things harder to fix for the EV era.

Blue Fisker car
Fisker Inc’s Ocean SUV, pictured at Mobile World Congress in 2022.

Joan Cros—NurPhoto/Getty Images

Trouble in paradise

Fisker’s list of problems has been growing since the beginning of this year.

The company has become the subject of an investigation after users complained that their Fisker trucks were rolling over. Its Ocean SUVs are now under investigation by US regulators brake related problems.

It is also in serious financial trouble. In its annual earnings report last monthrival Tesla produced about 10,200 EVs but only he gave 4,900 about that. Fisker said at the time that he was financially strapped and hoped to receive funding from a “major automaker.”

It has laid off 15% of its workforce as it prepares to streamline its financial operations. At the very least, it raised “serious doubts” about his ability to continue in the job.

Fisker received a warning from the NYSE for its low stock price in February. On Monday, less than a month after the previous announcement, the company was removed from the world’s largest public company.

The coming crisis has brought the ambitious EV company closer to bankruptcy than ever before.

Is this the last leg?

Earlier this month, Fisker said it would to stop production for six weeks as it missed interest payments and tried to raise $150 million by selling convertible notes. Long-anticipated talks with an unnamed “automaker giant” about a potential investment ended this week.

Fisker’s last hope from California was said to have it it was Nissanthe Japanese auto giant, which pulled out at the last minute, according to Reuters.

Fisker’s future has never been more uncertain, as has whether the company can weather the crisis. EV winter it remains to be seen.

But Henrik Fisker remained optimistic throughout. He said Yahoo Finance this month who believes that “we have a future—otherwise I wouldn’t be here.”

“And I believe that we can stop this, I would say, current EV crash,” he said.

Fisker could do with that hope.

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