Fisker has withdrawn its 2024 financial forecast as it faces a regulator probe over its Ocean SUV, the latest in a series of troubles for the struggling electric vehicle brand.
On April 3, the automaker said it would walk back its earnings forecasts for the year as it continued to look for solutions to its financial troubles. The move comes roughly one week after a Business Insider report claimed that roughly 40,000 of 70,000 reservations for the Fisker Ocean had been canceled since 2019 based on leaked internal data, putting the company on the line for paying back millions in pre-order fee reimbursements. Last February, the EV brand said it had 65,000 reservations.
Adding to its troubles, the National Highway Traffic Safety Administration (NHTSA) has launched an initial investigation into the Ocean SUV after receiving 14 complaints from consumers. The reports claimed that latches on the vehicle would fail to unlock when an occupant attempted to exit from a passenger or rear-side door, preventing them from exiting the cabin and remaining shut even when triggering the emergency override system in some cases.
In late February, Fisker warned investors that it was unable to last the year without additional funds but said it was pursuing partnerships that may offset its losses. The automaker has yet to announce progress on any deal that could avoid a closure, although it has since secured the services of bankruptcy advisors. The company has struggled to scale production of its Ocean SUV and continues to operate without a sufficient distribution network despite signing several dealer partners earlier this year.
