Fisker’s operations will soon wind down following a bankruptcy plan approved by U.S. Bankruptcy Court Judge Thomas Horan on October 11, 2024. The plan ensures that Fisker car owners can continue driving their vehicles. However, it leaves shareholders with no recovery, marking the end of the Southern California electric vehicle maker’s turbulent journey. The company is also under investigation by the Securities and Exchange Commission (SEC) for possible securities violations ahead of its June bankruptcy filing.
Mounting shareholder lawsuits and an SEC investigation underscore Fisker’s financial decline. In August, Fisker revealed that it received a subpoena from the SEC, which is now demanding that the company preserve records. While not commenting on specifics, the agency has escalated its pursuit of claims, even as Fisker continues to liquidate under Chapter 11 bankruptcy protection.
Additionally, Fisker’s fall from grace was precipitated by multiple factors, including failed attempts to secure strategic investments from automakers like Nissan and unsuccessful efforts to sell the company. Once positioned as a competitor to Tesla with its Ocean SUV, the company faced production and software issues that hindered its growth. The Ocean’s base model, initially priced at $38,999, saw sharp price cuts, leaving American Lease—a company that purchased Fisker’s remaining fleet—paying about $13,900 per vehicle.
However, the approved bankruptcy plan resolves key concerns, including covering recall costs for issues such as malfunctioning brakes and a defective water pump. Thanks to an agreement with American Lease, Fisker owners will also maintain access to over-the-air software updates needed to keep their vehicles operational. American Lease purchased Fisker’s unsold inventory and cloud access for a total of $46.25 million.
Despite Fisker’s bankruptcy, its CEO, Henrik Fisker, and other executives face ongoing legal battles. Shareholders accuse them of securities violations and misleading the public as the company’s finances deteriorate. Once valued at $28.50, the company’s stock plummeted to a mere nickel by the time of its bankruptcy.
Founded in 2016 and going public in 2020, Fisker once raised $1 billion through a special purpose acquisition company (SPAC), but financial mismanagement and EV production struggles ultimately led to its collapse. Fisker’s remaining assets, including intellectual property and manufacturing facilities, are expected to be sold, with proceeds going to the company’s secured creditor, CVI Investments.
