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  • The fall of EV startup Fisker: A comprehensive timeline | TechCrunch

    Henrik Fisker once envisioned a burgeoning EV empire at the startup he named after himself, which was to be led by the Ocean SUV. But cracks started showing in that vision almost as soon as the Ocean hit the road in 2023. 

    Fisker cut production targets multiple times, failed to meet sales goals and laid off staff. What’s more, its Ocean SUV was beset with software and mechanical issues, rendering it inoperable for some. Add troublesome brakes, sudden power loss and doors that wouldn’t open to the list of issues that led to multiple safety investigations and ultimately a pause in production in order to raise new capital.

    All of this and more has forced Fisker to file for Chapter 11 bankruptcy protection, marking the beginning of an inauspicious period for the eponymous startup. Below is a timeline of the events that led the automaker to this point. Scroll to the bottom to see the newest developments.

    2023

    Fisker fell short of its Q2 production target

    July 7 — The automaker produced 1,022 Ocean SUVs in the second quarter of 2023, several hundred vehicles short of its expectation of producing between 1,400 and 1,700 EVs. 

    Fisker sold convertible notes to fund operations

    July 10 — Fisker announced plans to sell $340 million in convertible debt, expecting the net proceeds to be $296.7 million. The automaker said it planned to use the funds to support its general corporate operations and add an additional battery pack line to “support growth” in 2024 and beyond. The company said funds will also be used for capital expenditures and the development of future products.

    Production target cut

    December 1 — Fisker cut its annual production guidance in an effort to free up $300 million in working capital. The company said it expected to produce about 10,000 vehicles in 2023. The production guidance is just a quarter of Fisker’s bullish forecast from a year ago.

    2024

    Fisker struggled to meet internal sales goals

    January 1 — Fisker remained far from meeting its publicly stated goal of delivering 300 electric SUVs per day globally. The EV startup spent much of December aiming to meet an internal sales goal of between 100 and 200 vehicles a day in North America, where the bulk of its inventory and sales efforts are. Fisker fell well below that target, often selling just one to two dozen of its Ocean SUVs a day here.

    Ocean SUV investigated over braking loss complaints

    January 15 — Federal safety regulators have opened an investigation into Fisker’s first electric vehicle over braking problems. Owners had lodged 19 complaints with the National Highway Traffic Safety Administration (NHTSA) on issues ranging from brake loss to problems with the gear shifter to a driver door failing to open from the interior and two instances of the vehicle’s hood suddenly flying up on the highway.

    Owners had flagged sudden power loss and brake problems for months

    February 9 — Since the initial fleet of Fisker Ocean SUVs were delivered, customers have reported more than 100 separate loss-of-power incidents. The company told TechCrunch it believes these problems are rare and that it has resolved “almost all the issues” with software updates. Customers have also reported sudden loss of braking power, problematic key fobs causing them to get locked inside or outside of the vehicle, seat sensors that don’t detect the driver’s presence and the SUV’s front hood suddenly flying up at high speeds.

    Feds opened second probe into the Ocean SUV after rollaway complaints

    February 16 — The NHTSA opened a second investigation into Fisker’s Ocean SUV after the agency received four complaints about the vehicle rolling away unexpectedly, resulting in one injury. The company told TechCrunch it is “fully cooperating” with the safety agency.

    Fisker laid off 15% of staff

    February 29 — Fisker announced its plan to lay off 15% of its workforce and says it likely does not have enough cash on hand to survive the next 12 months. The company says it is trying to find a way to raise that money as it works through a pivot from direct sales to a dealership model.

    Pause in production with just $121 million in the bank

    March 18 — Fisker announced it would pause production of its electric Ocean SUV for six weeks as it scrambles for a cash infusion. The company said in a regulatory filing that it had just $121 million in cash and cash equivalents as of March 15, $32 million of which is restricted or not immediately accessible. Fisker also said that its accounts payable balance is up to $182 million and that there is “substantial doubt” that it can continue operations without raising new capital.

    Fisker lost Nissan deal, putting rescue funds at risk

    March 25 — The negotiations between Fisker and a large automaker — reported to be Nissan — over a potential investment and collaboration were terminated, a development that puts a separate near-term rescue funding effort in danger. Fisker revealed in a regulatory filing that the automaker terminated the negotiations March 22. It did not explain why. But the company had to keep the negotiations going as part of one of the closing conditions for a potential $150 million convertible note. 

    Trading suspended by NYSE

    March 25 — The New York Stock Exchange suspended trading shares of Fisker and moved to take the company off its stock exchange, because it is “no longer suitable for listing” because of “abnormally low” price levels. 

    Fisker lost track of millions of dollars in customer payments for months

    March 27 — Fisker temporarily lost track of millions of dollars in customer payments as it scaled up deliveries, leading to an internal audit that started in December and took months to complete. Fisker struggled to keep tabs on these transactions, which included down payments and in some cases, the full price of the vehicles, because of lax internal procedures for keeping track of them, according to three people familiar with the internal payment crisis. In a few cases, it delivered vehicles without collecting any form of payment at all, they said. 

    New round of layoffs to ‘preserve cash’

    April 29 — Fisker laid off more employees to “preserve cash,” making good on a plan announced one week before, according to an internal email viewed by TechCrunch. Fisker expects to seek bankruptcy protection within the next 30 days if it can’t come up with that money, according to a U.S. Securities and Exchange Commission regulatory filing.

    Fisker stiffed engineering firm

    May 3 — Fisker stopped paying the engineering firm that helped develop the Pear, a low-cost EV meant for the masses, and the Alaska, Fisker’s entry into the red-hot pickup truck market. The firm also accuses Fisker of wrongfully holding on to IP associated with those vehicles. 

    Fisker Ocean faced fourth federal safety probe

    May 10 — The NHTSA opened a fourth investigation into the Fisker Ocean SUV to probe multiple claims of “inadvertent Automatic Emergency Braking.” The eight complaints allege that owners experienced sudden activation of the Automatic Emergency Braking system in moments where there were no other vehicles or obstructions in the path of their cars. 

    Hundreds of workers cut to keep EV startup alive

    May 29 — Hundreds more employees were laid off during the final week of May in a bid to stay alive, as the automaker continues to search for funding, a buyout or prepare for bankruptcy. One current and one laid off employee estimated that only about 150 people remained at the company. 

    Inside Fisker’s collapse

    May 31 — The road to Fisker’s ultimate ruin may have started and ended with its flawed Ocean SUV, which was riddled with mechanical and software problems. But it was paved with hubris, power struggles, and the repeated failure to set up basic processes that are foundational for any automaker.

    Ocean SUV issued first recall

    June 12 — Fisker issued the first recall for the Ocean SUV because of problems with the warning lights, according to new information published by the NHTSA. The instrument panel displays the brake, park and antilock brake system warning lights in the wrong font size and, at times, in the wrong color, making them noncompliant with Federal Motor Vehicle Safety Standards. The agency also says “multiple warning lights fail to illuminate during the ignition cycle.”

    Fisker filed for bankruptcy

    June 18 — After a year of struggling to stay afloat, Fisker filed for Chapter 11 bankruptcy protection. The California-based company had been seeking a deal with another automaker in a last-ditch effort to rescue the enterprise. The company estimated assets of $500 million to $1 billion and liabilities of between $100 million and $500 million, according to the filing. 

    Fisker failed because it wasn’t ready to be a car company

    June 18 — In the wake of its bankruptcy, Fisker said it will continue “reduced operations,” including “preserving customer programs, and compensating needed vendors on a go-forward basis.” In other words, it will continue to manage a bare-bones operation in case there is a willing buyer of the assets it’s putting up for sale in the Chapter 11 case.

    Fisker faced financial distress as early as August 2023

    June 21 — According to a new filing in its Chapter 11 bankruptcy proceeding, Fisker was facing “potential financial distress” as early as August 2023. That looming financial distress drove Fisker to solicit a partnership or investment from another automaker, according to the filing.

    The fight over Fisker’s assets is already heating up

    June 21 — The fight over Fisker’s assets is already charged just days into its bankruptcy filing, with one lawyer claiming the startup has been liquidating assets “outside the court’s supervision.” At issue is the relationship between Fisker and its largest secured lender, which loaned Fisker more than $500 million in 2023 at a time when the company’s financial distress was looming behind the scenes.

    Fisker asks bankruptcy court to sell EVs for about $14K each

    July 3 — If a judge in the Delaware Bankruptcy Court approves Fisker’s request to sell its remaining inventory to a New York-based vehicle leasing company, the automaker would be able to offload 3,231 finished EVs for $46.25 million, or around $14,000 per vehicle.

    Henrik Fisker, Geeta Gupta-Fisker drop salaries to $1

    July 9 — Henrik Fisker and his wife, Fisker co-founder Geeta Gupta-Fisker, are lowering their salaries to $1 in order to keep their failed EV startup’s bankruptcy proceedings funded. In addition to the salary reductions, Fisker’s restructuring officer, John DiDonato, said in Tuesday’s filing that Fisker will defer “certain severance payments, certain employee healthcare benefits, and vehicle sale incentive bonuses” that have not yet been paid. 

    Fisker has one major objector to its Ocean SUV firesale

    July 15 — The office of the U.S. Trustee, an arm of the Department of Justice that oversees the administration of bankruptcy, is objecting to a deal that would keep Fisker’s bankruptcy proceeding alive and pave the way for paying back creditors some of what they’re owed.

    Fisker cleared to sell North American EVs for $46.25 million

    July 16 — A bankruptcy judge gave Fisker the green light to sell more than 3,000 of its Ocean SUVs to a vehicle leasing company, which will net the defunct EV startup a maximum of $46.25 million. The approval of the sale clears the way for the rest of Fisker’s bankruptcy process to play out as it continues to liquidate what’s left of its failed business.

    The question haunting Fisker’s bankruptcy

    July 29 — The question folks are asking: does the automaker’s loan secured lender Heights Capital Management deserve to be at the front of the line to reap the proceeds of a liquidation? The entities reached an agreement to hammer out a settlement in the coming weeks on how to liquidate its assets. If successful, the case could remain in Chapter 11. If not, it would convert to Chapter 7, which would effectively dissolve Fisker forever.

    Fisker flips on who will pay for recalls

    September 18 — One of the many questions Fisker owners had as the company worked through the bankruptcy process was how the outstanding recalls would be handled. In mid-September, the company suddenly suggested that it would cover the cost of parts, but that those owners would have to pay out of pocket for labor costs. Just as suddenly, Fisker flipped, saying it would cover labor costs.

    The SEC opens an investigation

    October 4 — The U.S. Securities and Exchange Commission revealed in a filing that it opened an investigation into Fisker, and that it could bring actions “alleging violations of the federal securities laws.” The financial regulator told the bankruptcy court that it already sent multiple subpoenas, but was concerned Fisker didn’t have a plan in place to preserve its records. (The bankrupt EV startup ultimately allayed the SEC’s concerns, and the status of the probe is unknown.)

    Fisker’s HQ abandoned in ‘complete disarray’

    October 5 — The landlord of Fisker HQ’s final resting place — a facility in La Palma, California — says the building was abandoned in “complete disarray,” with hazardous waste and even full-size vehicle clay models left behind. The landlord’s filing describes a messy few days in which, apparently, Fisker employees as well as representatives of an auction house emptied the facility.

    The DOJ says Fisker’s recall repair plan is illegal

    October 7 — The U.S. Department of Justice, writing on behalf of the National Highway Traffic Safety Administration, tells the bankruptcy court it thinks Fisker’s attempt to push recall labor costs on owners is illegal. The objection ultimately helps change Fisker’s mind a final time.

    Fisker’s fleet buyer balks at completing the sale

    October 8 — Fisker throws a major curveball at the bankruptcy court, after it told American Lease it did not believe it would be able to transfer necessary data to a new, non-Fisker server. American Lease revealed the snag in a filing and told the judge that it may not be able to complete the sale — which would jeopardize Fisker’s settlement plan with its creditors.

    Fisker’s bankruptcy plan confirmed

    October 16 — Fisker was able to resolve the flurry of eleventh-hour problems described above and get its liquidation plan confirmed by the bankruptcy court. The company reversed course and agreed to cover the labor costs of its recalls. It worked out a solution with American Lease regarding the transfer of vehicle data. And a trustee was appointed to oversee the sale of the remainder of Fisker’s non-vehicle assets, including around $1 billion worth of equipment left in Austria, where the Oceans were built.

    2025

    Henrik Fisker quietly winds down his nonprofit

    Henrik Fisker and his wife Geeta (who was also CFO and COO of the company) established a charitable foundation in late 2021 meant to “incubate innovation in healthcare, education, sustainability, mobility, and all causes that help support the planet and improve and further the lives of people and animals.”

    But a review of tax filings with the IRS show the foundation never gave out more than around $100,000, and has since been shut down. The pair wound down the nonprofit, according to tax filings that were made public in 2025.

    Henry Pickavet, Sean O’Kane

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  • New York City Is Stuck With a $45 Million EV Fleet That’s Glitchy as Hell

    There’s going green for the sake of the planet, and then there’s going green as part of a policy initiative that winds up buying a bunch of glitch-plagued electric vehicles from a company that went bankrupt and can no longer service them.

    The latter is the exact story of a New York-based company called American Lease, which has spent around $45 million for 2,800 cars from Fisker, a now-dead EV startup that only made 11,000 of that model in its short life anyway, and is now using them as part of NYC’s Green Rides Initiative.

    They have accordingly deployed the Ocean, a sort of Escalade SUV knockoff, across NYC as a ride-sharing or car service vehicle, meaning that the only Ocean you may ever see in your life is popping up multiple times throughout New York.

    And in true tech bro fashion, the decision to buy these almost 3,000 now-defunct SUVs for millions of dollars was made fast—and broke things, possibly literally.

    “We were sitting at lunch and I was reading an article about how Henrik Fisker, who founded Fisker, had listed his home for more than the market cap of the company at that point,” American Lease executive vice president Josh Bleiberg told Bloomberg. “So I was like, ‘Screw it: Let’s buy Fisker.’”

    The Fisker cars are all kinds of messed up

    Here’s the problem, though: the Ocean debuted in 2020 and was immediately slapped by regulators for multiple safety issues, a problem that eventually led to a recall of all 2024 models and Fisker’s bankruptcy filing the same year.

    Fisker produced over 10,000 Ocean SUVs in 2023, but only 4,929 of these vehicles were delivered to customers. Fisker also faced challenges in selling the remaining inventory, an understandable position considering the recall issues.

    Those problems included suddenly losing power, the inability to exit in an emergency, issues with the gauges and icons on the dashboard, software that did not meet safety requirements, brakes not working, and “unintended” vehicle movement.

    “A door that fails to open can prevent occupants from exiting in an emergency, increasing the risk of injury,” the National Highway Traffic Safety Administration (NHTSA) said in its findings.

    A Bloomberg reporter who recently took a ride in one noted that you should definitely look out for the “ghost light”—which randomly goes on and then blinks for 10 to 15 seconds before resetting—or California Mode, which sometimes causes the windows to get stuck in the down position and then have to be reset at the company’s Bronx site.

    Another fun perk? The vehicles are often old, with their software in limbo, managed by third-party startups like indiGO Technologies, who are trying to keep them up-to-date. No word on how you’d fix a major problem with an Ocean, because the company that made it is dead, and it was the only model Fisker ever made.

    This makes sense because after the 2024 recall, owners of the cars claimed that the Fisker development engineers were racing to meet the regulatory requirements and made so many changes so fast that many of them didn’t work at all. That led to accusations of “bricking,” which is when an EV becomes totally unresponsive.

    How much did American Leasing pay for the Fisker cars?

    To be fair, American Leasing did get a good deal on the Fisker cars. While they once sold for around $70,000 as luxury EVs, the company snapped them up for around $16,000 each. Whether that price factored in the recall issues or repair costs, though, isn’t clear.

    American Leasing did not respond to a request for comment.

    What’s remarkable is that New York’s push for an all-electric fleet—enforced by the city’s Green Rides initiative—has inadvertently created a marketplace for these zombie EV startups.

    The city aims for all Uber and Lyft rides to be emissions-free by 2030, but limited supply and declining federal incentives have left fleet operators scrambling for affordable replacements, often turning to used and propped-up vehicles from bankrupt or failing companies. The irony in this is that the owner of American Leasing doesn’t think the Oceans will make it until that 2030 deadline.

    “We don’t anticipate these cars lasting much past 150,000 to 200,000 miles,” Bleiberg told Bloomberg.

    Riley Gutiérrez McDermid

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  • Fisker faces more bad news as the SEC starts investigating its business practices

    Fisker faces more bad news as the SEC starts investigating its business practices

    The past week hasn’t been the kindest to the electric vehicle industry. Now, it’s capped off with news that the EV startup Fisker is the subject of an investigation from the US Securities and Exchange Commission (SEC).

    reported that SEC officials sent several subpoenas to Fisker. The filing doesn’t specifically say what the subpoenas are asking for or looking into but it’s clear that the SEC has launched an investigation into the floundering EV maker that .

    Fisker has been struggling to keep its head above water ever since last year’s disastrous rollout of its Ocean SUV that failed to score more than a few thousands sellers even though it produced well over 10,000 units. Following its Q4 earnings report last year that saw a gross margin loss of 35 percent, the car maker announced it would lay off 15 percent of its workforce the following March as it shifted to a direct-to-consumer sales strategy.

    A Fisker spokesperson declined to comment on the matter to TechCrunch saying they could not “comment on the existence or nonexistence of a possible investigation.”

    Fisker isn’t the only EV maker to suffer a noticeable setback. Tesla saw a major stumble with .

    Danny Gallagher

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  • The fight over Fisker’s assets is already heating up | TechCrunch

    The fight over Fisker’s assets is already heating up | TechCrunch

    Fisker is just a few days into its Chapter 11 bankruptcy, and the fight over its assets is already charged, with one lawyer claiming the startup has been liquidating assets “outside the court’s supervision.”

    At issue is the relationship between Fisker and its largest secured lender, Heights Capital Management, an affiliate of financial services company Susquehanna International Group. Heights loaned Fisker more than $500 million in 2023 (with the option to convert that debt to stock in the startup) at a time when the company’s financial distress was looming behind the scenes.

    That funding was not originally secured by any assets. That changed after Fisker breached one of the covenants when it failed to file its third-quarter financial statements on time in late 2023. In exchange for waiving that breach, Fisker agreed to give Heights first-priority on all of its current and future assets, giving Heights considerable leverage. Heights not only gained pole position to determine what happens to the assets in the Chapter 11 proceedings, but also gave them the chance to tap a preferred restructuring officer to oversee the company’s slow descent into bankruptcy.

    Alex Lees, a lawyer from the firm Milbank who represents a group of unsecured creditors owed more than $600 million, said in the proceeding’s first hearing on Friday in Delaware Bankruptcy Court that it took “too long” to get to this point. He said Fisker’s tardy regulatory filing was a “minor technical default” that somehow led to the startup “basically hand[ing] the whole business over to Heights.”

    “We believe this was a terrible deal for [Fisker] and its creditors,” Lees said at the hearing. “The right thing to do would have been to file for bankruptcy months ago.” In the meantime, he said, Fisker has been “liquidating outside the court’s supervision” for the benefit of Heights in what he said amounts to “suspect activity.” Fisker has spent the run-up to the bankruptcy filing slashing prices and selling off vehicles.

    Scott Greissman, a lawyer representing the investment arm of Heights, said Lees’ comments were “completely inappropriate, completely unsupported,” and derided them as “designed as sound bites” meant to be picked up by the media.

    an”There may be a lot of disappointed creditors” in this case, Greissman said, “none more so than Heights.” He said Heights extended “an enormous amount of credit” to Fisker. He added later that even if Fisker is able to sell its entire remaining inventory — around 4,300 Ocean SUVs — such a sale “will maybe pay off a fraction of Heights’ secured debt,” which currently sits at more than $180 million.

    Lawyers told the court Friday that they have an agreement in principle to sell those Ocean SUVs to an unnamed vehicle leasing company. But it’s not immediately clear what other assets Fisker could sell in order to provide returns for other creditors. The company has claimed to have between $500 million and $1 billion in assets, but the filings so far have only detailed manufacturing equipment, including 180 assembly robots, an entire underbody line, a paint shop and other specialized tools.

    Lees was not alone in his concern over how Fisker wound up filing for bankruptcy. “I don’t know why it took this long,” Linda Richenderfer, a lawyer with the U.S. Trustee’s Office, said during the hearing. She also noted that she was still reviewing new filings late Thursday and in the hours before the hearing.

    She also expressed “great concern” that the case could convert to a straight Chapter 7 liquidation following the sale of the Ocean inventory, leaving other creditors fighting for scraps.

    Greissman said at one point that he agreed that Fisker “probably took more time” than needed to file for bankruptcy protection, and that some of these quarrels could have been “more easily resolved” if the case had started sooner. He even said he agrees with Richenderfer that “even with a fleet sale, Chapter 11 may not be sustainable.”

    The parties will meet again at the next hearing on June 27.

    Before he dismissed everyone, Judge Thomas Horan thanked all the parties involved for getting to the hearing “pretty cleanly” despite the rush of filings this week. He particularly called out the U.S. Trustee’s office for working under “really difficult circumstances” to “get their heads around” the case with “minimal controversy, in the scheme of things.”

    “I imagine there are a few people who want to catch up on some sleep now,” he said with a smile, as he ended the hearing.

    Sean O’Kane

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  • Fisker failed because it wasn’t ready to be a car company | TechCrunch

    Fisker failed because it wasn’t ready to be a car company | TechCrunch

    Two years ago, an employee at Fisker Inc. told me that the most pressing concern inside the EV startup was not whether its Ocean SUV would get built. Fisker was outsourcing the manufacturing of its first EV to highly respected automotive supplier Magna, after all. The startup’s November 2022 start-of-production target was aggressive, but not impossible for a company like Magna, which builds vehicles for the likes of BMW.

    Instead, this person said, employees were increasingly worried that Fisker wouldn’t be ready to handle all the problems that come after a company puts a car on the road. They were worried the focus was all on building the car and not on the company.

    The conversation stuck with me because Fisker founder and CEO Henrik Fisker had an automotive startup fail a decade ago for, arguably, this reason. That company, Fisker Automotive, got a hybrid sports car into the hands of a few thousand customers. But the company buckled soon after as it faced complaints about quality, the failure of its battery supplier, and a hurricane that literally sunk a ship full of vehicles.

    The employee’s warning that the new Fisker was heading down a similar path was striking and ultimately prescient. Fisker filed for Chapter 11 bankruptcy protection this week after spending only just one year shipping its SUV to customers around the world. In large part, its undoing is directly tied to its inability to address the worries that employee raised in 2022.

    This person wasn’t alone. Dozens of others who worked at Fisker have echoed this sentiment to me in conversations since, nearly all of them on the condition of anonymity because they feared losing their jobs or retaliation from the company. Those conversations informed stories I reported on — the Ocean’s quality and service problems, Fisker’s internal chaos, and decisions from Henrik Fisker and his co-founder, wife, CFO and COO, Geeta Gupta-Fisker, that dragged the company down.

    Most all of them told me about how the lack of preparedness ran deep and permeated almost every division of the company, as I’ve previously reported for TechCrunch and Bloomberg News.

    The software powering the Ocean SUV was underbaked. It contributed to the delay of the launch of the SUV, and it even kneecapped the very first delivery in May 2023, which Fisker had to turn around and troubleshoot shortly after handing it over. A similar thing happened when the company made its first deliveries in the U.S. in June 2023, when one of its board members’ SUVs lost power shortly after taking delivery.

    The company shipped far fewer Ocean SUVs than it originally projected. Even after it lowered its target for 2023 multiple times, it still struggled to hit its internal sales goals. Sales employees have recounted stories of calling potential customers repeatedly in hopes of selling vehicles because so few new leads were coming in. Others wound up pitching in to sell cars even if they worked in completely different departments.

    Many customers who did take delivery of their Ocean ran into problems like sudden power loss, trouble with the braking system, glitchy key fobs, problematic door handles that could temporarily lock them in or out of the car, and buggy software. (The National Highway Traffic Safety Administration has opened four investigations into the Ocean.)

    Fisker struggled with the quality of some of its suppliers, and employees have said it did not build out a proper buffer of spare parts. This put extra pressure on the people in charge of trying to fix the cars as they ran into problems, and ultimately led to the company plucking parts from not only Magna’s production line in Austria, but also from Henrik Fisker’s own car. (Fisker has denied these claims.)

    This whole time, lower- and midlevel employees went to great lengths to do what they could to help out the slow-growing customer base. One owner told me an employee took a phone call on their personal cell phone while at a funeral. Other employees relayed stories of workers doing company business while at the hospital. Many worked long days, nights and weekends — to the point where at least one hourly employee has filed a prospective class action over this very issue.

    The company itself admitted on multiple occasions that it did not have enough staff to handle the influx of customer service requests. This was another place where workers from other departments pitched in. Some are even still fielding customer calls today, despite having left Fisker weeks or months ago.

    Fisker struggled at the mundane-yet-serious work of being a public company, too. It lost track of around $16 million in customer payments at one point, thanks to messy internal accounting practices. It suffered multiple delays in its required reporting to the Securities and Exchange Commission. One of those delays allowed one of the company’s largest lenders to eventually take the reins in the final months.

    Despite all this, Fisker is still touting its speed to market as an accomplishment as it begins the bankruptcy process. “Fisker has made incredible progress since our founding, bringing the Ocean SUV to market twice as fast as expected in the auto industry,” a nameless spokesperson said in a press release about the Chapter 11 filing.

    This ephemeral corporate representative goes on to say that Fisker “faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently.” While that is certainly true to an extent, there is otherwise no introspection about the myriad issues that got the company to this moment in time.

    Perhaps that will surface in the Chapter 11 proceedings, where the company looks to settle its debts (of which it claims to owe between $100 million and $500 million) and offload or otherwise restructure its assets (totaling between $500 million and $1 billion).

    What happens next will depend on how those proceedings go. Fisker always took an “asset-light” approach, likening itself to how Apple leveraged Foxconn to help build the iPhone into a global phenomenon. The problem with being asset-light is that it naturally means there is less to borrow against or sell when things break bad.

    Magna has stopped production of the Ocean and expects a $400 million revenue loss this year as a result. It’s unclear how much progress Fisker made on its future products, the sub-$30,000 Pear EV and the Alaska pickup. The engineering firm that was co-developing these vehicles with Fisker recently sued the startup, calling the projects into question.

    Fisker said in its press release that it will continue “reduced operations,” including “preserving customer programs, and compensating needed vendors on a go-forward basis.” In other words, it will continue to manage a bare-bones operation in case there is a willing buyer of the assets it’s putting up for sale in the Chapter 11 case.

    A decade ago, the bankrupt Fisker Automotive did find a buyer. It ultimately morphed into a startup known as Karma Automotive, which is still nominally around today. There have been similar outcomes lately. Three other EV startups that recently filed for bankruptcy — Lordstown Motors, Arrival and Electric Last Mile Solutions — were able to sell off assets to peer companies in the space.

    But the ultimate fate of this startup, and its assets, won’t change the fundamental problem: Fisker wasn’t ready to grapple with bringing a flawed car to market.

    Sean O’Kane

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  • EV-maker Fisker files for bankruptcy

    EV-maker Fisker files for bankruptcy

    STORY: U.S. electric vehicle maker Fisker filed for bankruptcy protection late Monday.

    It’s looking to sell assets and restructure its debts.

    The firm has been hit by a rapid cash burn while it tries to deliver its “Ocean” EVs in the U.S. and Europe.

    Founded by auto designer Henrik Fisker, the firm had first flagged doubts about its viability back in February.

    A month later, it failed in attempts to win backing from a big car maker.

    Reuters reported that to be Japan’s Nissan.

    Now Fisker says bankruptcy protection is the best way forward.

    The company blamed “market and macroeconomic headwinds”.

    Global EV sales growth has recently faced a slowdown, with the market also facing a fierce price war sparked by Tesla.

    Fisker made around 10,000 vehicles last year – less than a quarter of its forecast.

    Fewer than 5,000 were actually delivered to customers.

    Its cars also face investigation by regulators over various incidents, including one probe started last month by the U.S. auto safety watchdog.

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  • Fisker cuts hundreds of workers in bid to keep EV startup alive | TechCrunch

    Fisker cuts hundreds of workers in bid to keep EV startup alive | TechCrunch

    Struggling EV startup Fisker has laid off hundreds of employees in a bid to stay alive, as it continues to search for funding, a buyout or prepare for bankruptcy.

    Workers suspected layoffs were coming when the company directed everyone to work from home on Wednesday — an out-of-character directive, according to multiple current and former employees. The layoffs were announced during an all-hands meeting held Wednesday morning.

    Founder and CEO Henrik Fisker told employees that the large investor his company owes money to — and the chief restructuring officer working on the investor’s behalf — wanted to let more people go, according to employees who attended. Fisker has never disclosed who is ultimately behind the convertible debt investment in question, though Henrik Fisker did reference Heights Capital Management during Wednesday’s meeting when discussing the layoffs, according to the two employees. Heights Capital Management is an affiliate of financial services giant Susquehanna International Group.

    One current and one laid off employee estimated that only about 150 people remain at the company.

    Fisker has already gone through several rounds of layoffs. It announced cuts of 15% in February. Fisker employed 1,135 people as of April 19, according to a regulatory filing. Those workforce numbers were reduced by an unknown amount after another round of layoffs in late April, and another series in late May before Wednesday’s cuts.

    Fisker did not immediately respond to a request for comment. Restructuring officer John DiDonato also did not immediately respond to a request for comment. DiDonato previously told California’s Employment Development Department on April 29 that it planned to lay off more than 300 workers on June 28 if the company was “unable to address its operating cash requirements,” according to documents obtained by TechCrunch.

    Despite the widespread cuts, Henrik Fisker struck a somber-but-determined tone during the call, according to sources. At one point, he noted that the company built “something great” and would continue to sell its one and only EV — the Ocean SUV — to people who want to buy them.

    He also suggested that laid off workers would be re-hired once the company is back up and running, according to the account of one person who attended the meeting.

    Many workers initially learned they were laid off after losing access to Microsoft services like Teams or Outlook. Later in the day, some employees received an email officially announcing they were terminated with one week of severance. Laid-off employees echoed similar details in posts on LinkedIn.

    These new layoffs come after months of troubles at Fisker, and less than a year after the company began full-scale deliveries of the Ocean SUV.

    Sean O’Kane

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  • TechCrunch Mobility: The wheels are starting to come off the Fisker EV bus | TechCrunch

    TechCrunch Mobility: The wheels are starting to come off the Fisker EV bus | TechCrunch

    TechCrunch Mobility is a weekly newsletter dedicated to all things transportation. Sign up here — just click TechCrunch Mobility — to receive the newsletter every weekend in your inbox. Subscribe for free.

    Welcome back to TechCrunch Mobility — your central hub for news and insights on the future of transportation.

    Before we jump into the startup and tech fray, I wanted to touch on some activity over on the hill — Capitol Hill, that is. The Biden Administration has released two new (and separate) proposed standards — via the Department of Energy (DOE) and the Environmental Protection Agency — that will affect U.S. automakers and, ultimately, you. While both regulations have been softened to assuage the automotive industry, car dealers and unions, they also put in place far stricter standards than existed before.

    The DOE issued a gentler “petroleum equivalency factor,” which gives EVs a score, of sorts, under the government’s corporate average fuel economy (CAFE) standards. The original proposal would have made it difficult for automakers to meet the CAFE standards, which would have meant billions of dollars in fines. (E&E has a nice explainer.)

    Meanwhile, the EPA released its tailpipe standards for 2027 to 2032 model year cars and light-duty trucks that will put stiffer requirements on automakers but gives them more flexibility to meet the proposed rules via a variety of powertrains. In other words, the standards are technology agnostic and can be met without shifting an entire fleet to battery electric. It’s also far less stringent than the original proposal that would have required EV sales to make up 67% of the total U.S. passenger vehicle market by 2032.

    What does this mean for EV startups? Not much since battery electric vehicles, like those made by Rivian, Tesla and Lucid, meet the clean car standard of a CO2 limit of 85 grams per mile by model year 2032 (a 50% reduction from model year 2026 standards). There are real implications to the legacy automakers, which are plowing billions into developing, building and selling EVs, but making a profit from internal combustion engine vehicles. If there’s one clear winner here, it might be plug-in hybrids.

    This week’s news also includes articles about Rivian’s partnership with Tesla, electric boat startup Candela, continued financial fallout at Fisker, a startup trying to tackle the precarious world of extended warranties, and more!

    Let’s go!

    A little bird

    Last month, a little bird told us Clevon, a company that started developing autonomous delivery technology in 2018, was struggling to find new investment and was on the brink of shutting down. The company’s co-founder said at the time (in an email viewed by TechCrunch) that it was looking for buyers for its hardware and software IP and AV assets and was even taking on its workforce.

    Clevon is still plugging along, according to co-founder and CEO Sander Sebastian Agur. He wouldn’t provide a lot of detail but said the company was funded and has “entered into an exclusivity agreement for its merger by an American electric vehicle company.” The agreement is expected to be completed by the first half of June.

    The company is having to make some cost reductions in the meantime and about 17 employees are being laid off.

    Got a tip for us? Email Kirsten Korosec at kirsten.korosec@techcrunch.com or Sean O’Kane sean.okane@techcrunch.com. If you prefer to remain anonymous, click here to contact us, which includes SecureDrop (instructions here) and various encrypted messaging apps.

    Deal of the week

    money the station

    Uber seems to be everywhere, so it might surprise you that the company just made its first investment in an Africa-founded startup. And it’s a biggie.

    Moove, an African mobility fintech that offers vehicle financing to ride-hailing and delivery app drivers, raised $100 million in a Series B funding round led by Uber. Sovereign wealth fund Mubadala, Dubai-based The Latest Ventures, AfricInvest, Palm Drive Capital, Triatlum Advisors, and Future Africa also participated in the funding round. Moove is now valued at $750 million.

    Why would Uber be interested in Moove? Uber is Moove’s largest car financing and vehicle supply partner. And Moove, which has made EVs a big part of its business strategy, aligns with Uber’s commitment to a fully zero-emission fleet by 2040.

    Other deals that got my attention this week …

    Amber, a Bay Area startup founded in early 2023 that just launched an aftermarket Tesla extended warranty product, raised $3.18 million in a seed round co-led by Era and Primer Sazze, with Alcove Fund, Virta Ventures, Global Millennial Capital and Root & Shoot Ventures joining.

    Candela, the electric boat maker, raised $25 million in a round led Groupe Beneteau, with participation from EQT Ventures, Ocean Zero LLC, and Kan Dela AB.

    Pelikan Mobility, a French startup developing fleet management software for commercial EVs, raised €4 million ($4.4 million) in a seed round from Pale Blue Dot, Frst, Seedcamp and others.

    Stellantis invested an undisclosed amount into SteerLight, a French startup developing low-cost lidar designed for advanced driver assistance systems. In a separate non–car related deal, the automaker purchased 8.3 million shares of Archer Aviation stock. Stellantis said this signals its confidence in Archer’s plans to bring electric vertical take-off and landing (eVTOL) aircraft to market beginning in 2025.

    Notable reads and other tidbits

    Apps

    Apple was sued this week by the U.S. Department of Justice for alleged monopolistic practices. Here’s an explainer and all of our coverage to date. Tucked inside the lawsuit is a section on automotive, namely the smartphone projection feature known as Apple CarPlay. The U.S. government claims in the lawsuit that “Apple has told automakers that the next generation of Apple CarPlay will take over all of the screens, sensors, and gauges in a car, forcing users to experience driving as an iPhone-centric experience if they want to use any of the features provided by CarPlay.” Some have even speculated that this explains why General Motors ditched Apple CarPlay altogether.

    We’re a bit skeptical over here. For one, automakers can choose what screen Apple CarPlay is projected to, just like it does with competitor Android Auto. And automakers still have their own underlying native software, which, by the way, is increasingly coming from Google.

    Electric vehicles, charging & batteries

    Cowboy has launched an all-road electric bike to attract riders beyond European city centers.

    Fisker’s financial health is fading — and fast. The company said it had just $121 million in cash and cash equivalents as of March 15, $32 million of which is restricted or not immediately accessible. The company has paused production of its electric Ocean SUV for six weeks as it scrambles for a cash infusion.

    India has an eye-popping stat. The number of startups in India’s electric two-wheeler market has surged to more than 150, up from 54 in 2021, driven by government incentives to promote clean vehicles and cut oil imports, TechCruncher Manish Singh reports.

    Rivian customers can now request an adapter to tap into Tesla’s vast North American network of Superchargers, making it the second automaker to do so behind Ford.

    Steve Burns, the ousted founder, chairman and CEO of bankrupt EV startup Lordstown Motors, has settled with the U.S. Securities and Exchange Commission over misleading investors about demand for the company’s flagship all-electric Endurance pickup truck.

    TechCrunch contributor Emme Hall took the 2025 Honda CR-V e:FCEV — a hydrogen fuel cell–powered version of the popular crossover — out for a first drive and explores why the heck this automaker would launch a car where there is hardly any infrastructure. Oh, and she discovered this vehicle has a bit of a plug-in hybrid twist.

    Flight

    DoorDash expanded its partnership with Alphabet’s Wing to bring its autonomous drone delivery pilot to the United States. It’s fairly limited for now; select users in Christiansburg, Virginia, will be able to order eligible menu items from their local Wendy’s.

    Joby Aviation, the startup developing electric air taxis, said it will deliver two aircraft to MacDill Air Force Base in 2025 as part of the eVTOL company’s AFWERX Agility Prime contract with the U.S. Air Force.

    The U.S. Department of Transportation plans to conduct its first industry-wide review of data security and privacy policies across the largest U.S. airlines. The agency says it will examine whether U.S. airline giants are properly protecting their customers’ personal information and whether airlines are “unfairly or deceptively monetizing or sharing that data with third parties.”

    In-car tech

    Nvidia held its annual GTC developer conference this past week. You can catch up on all of our GTC coverage here, including some surprises in co-founder and CEO Jensen Huang’s keynote. Automotive News homed in on how Nvidia’s computing architecture is being used by companies like Cerence, SoundHound and Wayve to design user interfaces that incorporate generative AI into the car.

    This week’s wheels

    Subaru Solterra EV 2024

    Image Credits: Kirsten Korosec

    I spent some time in the 2024 Subaru Solterra, a battery electric crossover built as part of a joint project with Toyota, to experience what has changed or improved since the vehicle launched the year before. And there have been changes!

    The most obvious is the steering wheel, which is no longer a circle and now more of a squarical shape, a change made after feedback from consumers. You’ll notice the instrument cluster actually sits above the steering wheel, which takes some getting used to. The new shape helps improve visibility.

    Two other items of note, once I got the Subaru Solterra app linked up with the vehicle: The infotainment experience was OK. There were some buggy moments and there isn’t an intuitive and easy one swipe or click way to move between Apple CarPlay and the native software system. It wasn’t my best in-car software experience, but certainly not the worst, either.

    On the advanced driver assistance front, Subaru has added a traffic jam assist feature that provides hands-free steering in low-speed traffic jams up to 25 miles per hour. That is a super specific use case that many drivers might never need due to the speed limitations. Thanks to Phoenix traffic, I was able to test it. The lane change assist — another new feature that will automatically change lanes if the driver hits the indicator — I found a bit wonky to understand exactly when I could use it. (This feature only works between 55 and 85 miles per hour.)

    Kirsten Korosec

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  • EV startup Fisker raises going concern doubts, shares plunge

    EV startup Fisker raises going concern doubts, shares plunge

    By Zaheer Kachwala and Abhirup Roy

    (Reuters) -Fisker on Thursday warned it might not be able to continue as a going concern as it struggled to sell its flagship electric vehicle after high interest rates have led to a slowdown in demand, sending its shares down 35% in extended trading.

    The maker of Ocean electric SUVs said its current resources were “insufficient” to cover the next 12 months. Fisker said it would cut its workforce by about 15% and was in talks with a debt holder about a potential investment.

    Fisker also said it was in talks with a large automaker about a deal that could include an investment in the startup, joint development of one or more electric vehicle platforms, and North America manufacturing. It did not disclose the name of the automaker or financials of the deal.

    Fisker said it aims to deliver between 20,000 and 22,000 Ocean vehicles in 2024. If the additional financing plans do not materialize, the company said it might be forced to reduce production of Ocean, decrease investments, scale back operations and cut jobs further.

    Fisker’s commentary followed disappointing production forecasts from larger peers Rivian and Lucid as high borrowing costs have sourced consumer sentiment and sharply slowed demand for EVs that are typically more expensive than gasoline-powered vehicles.

    “2023 was a challenging year for Fisker, including delays with suppliers and other issues that prevented us from delivering the Ocean SUV as quickly as we had expected,” CEO Henrik Fisker said.

    The company has been grappling with delivering its vehicles to customers. Though it made more than 10,000 vehicles in 2023 – less than a quarter of its initial forecast – it delivered only about 4,700.

    Last month, Fisker said it would add dealerships alongside its direct-to-consumer distribution model to expand its delivery network. So far, Fisker has signed 13 dealer partners across the U.S. and Europe.

    Fisker said its business plan was “highly dependent” on the successful transfer to the new dealer partner model this year.

    Last year, Fisker unveiled a $45,000 electric pickup, Alaska, and a smaller SUV, PEAR, priced at $29,990. But the projects depend on the partnership.

    “We are not planning to start external expenditure on our next projects until or we have a strategic partnership in place,” Henrik Fisker said on a post-earnings call with analysts.

    On Thursday, Fisker reported preliminary revenue of $200.1 million for the fourth quarter, missing the average analyst estimate of $310.8 million, according to LSEG data. Net loss widened to $463.6 million from $170 million a year ago.

    (Reporting by Zaheer Kachwala in Bengaluru and Abhirup Roy in San Francisco; Editing by Shailesh Kuber, Maju Samuel and David Gregorio)

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  • Good News Drives Fisker Stock Into 2024

    Good News Drives Fisker Stock Into 2024

    Finally, some good news for Fisker (NYSE: FSR) investors! After a difficult third quarter that had production estimates slashed, a downbeat earnings report, a resigning chief accounting officer, and notice from the New York Stock Exchange for the late filing of its report, investors finally have some positive news heading into 2024. Let’s dig in and see if Friday’s stock price pop of roughly 15% is warranted.

    Surprise

    With so much pessimism surrounding the company, and a stock price testing new record lows, it didn’t take much to boost the price this past Friday when Fisker announced better-than-expected delivery numbers.

    More specifically, Fisker grew deliveries by over 300% from the third quarter to the fourth quarter, reaching roughly 4,700 total deliveries. Fisker produced 10,142 units in 2023 with deliveries beginning in June and taking a big uptick in September and October.

    Further, Fisker began deliveries in Canada during December and is now operating in 12 markets across the globe. The first Fisker Ocean Sport — the company’s entry-level trim — recorded its first delivery in the U.K. in December.

    Before we surround those figures with a bit more context, it’s worth noting that Henrik Fisker, chairman and CEO, remained optimistic when speaking about the 4,700 deliveries: “This accomplishment represents substantial revenue, and as we accelerate our delivery pace in 2024, I am excited to see faster growth. We have a solid business with relatively low overhead and an award-winning vehicle that customers enjoy.”

    Adding context

    While the surge in deliveries was very much welcomed by investors, it’s fair to say there is some context worth adding. Investors have to remember that the California-based automaker originally estimated production between 20,000 and 23,000 units before slashing that estimate to between 13,000 and 17,000 units.

    Finally, management lowered those estimates yet again to roughly 10,000 units as the company had been struggling with a cash crunch and decided to unlock over $300 million in working capital by reducing production.

    Gaining momentum

    Friday’s announcement likely confirmed to investors that some speed bumps were in the rearview mirror. Investors had hints that deliveries were accelerating when the company noted that over 1,200 vehicles were delivered in October alone, which exceeded the company’s entire third-quarter deliveries.

    Fisker’s Ocean has won six different European awards in Germany, France, Denmark, and the U.K., delivered two important over-the-air (OTA) software updates in the fourth quarter, and expanded its physical footprint and customer engagement.

    There’s no question the company is gaining some momentum heading into 2024, and the stock could certainly pop higher if the company proves it can expand its delivery infrastructure and close the gap between deliveries and production.

    Should you invest $1,000 in Fisker right now?

    Before you buy stock in Fisker, consider this:

    The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Fisker wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

    Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.

    See the 10 stocks

     

    *Stock Advisor returns as of December 18, 2023

     

    Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

    Good News Drives Fisker Stock Into 2024 was originally published by The Motley Fool

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  • Massive News for Fisker Stock Investors

    Massive News for Fisker Stock Investors

    Fool.com contributor Parkev Tatevosian reviews a significant investor update from Fisker (NYSE: FSR) and discusses what it could mean for shareholders.

    *Stock prices used were the afternoon prices of Dec. 31, 2023. The video was published on Jan. 2, 2024.

    Should you invest $1,000 in Fisker right now?

    Before you buy stock in Fisker, consider this:

    The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Fisker wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

    Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.

    See the 10 stocks

     

    *Stock Advisor returns as of December 18, 2023

     

    Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

    Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

    Massive News for Fisker Stock Investors was originally published by The Motley Fool

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  • Tesla Stock Today: A Bad Day, A Very Good Year

    Tesla Stock Today: A Bad Day, A Very Good Year

    Tesla stock has had a great year—but a lousy five months and change as it limps into the end of the year.

    Continue reading this article with a Barron’s subscription.

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  • EV startup Fisker cut its 2023 production target for the fourth time | TechCrunch

    EV startup Fisker cut its 2023 production target for the fourth time | TechCrunch

    Fisker, the California-based EV startup, cut its annual production guidance in an effort to free up $300 million in working capital, the company said in a business update Friday.

    Fisker said it expects to produce about 10,000 vehicles this year. The decision comes less than a month since Fisker cut its production target to between 13,000 and 17,000 vehicles for 2023. The production guidance is just a quarter of Fisker’s bullish forecast from a year ago. In November 2022, Fisker said it planned to produce 42,400 Ocean SUVs by the end of 2023 due to strong demand in the U.S. and Europe. That rosy projection was slashed in May to 32,000-36,000 vehicles and then cut again in August to 20,000-23,000 vehicles. This latest update makes four reductions since the spring.

    The production cut will allow the company to access $300 million in working capital, giving the company “flexibility,” according to the business update.

    “Our teams have worked hard to overcome some early delivery challenges and are now setting an impressive pace as we prepare to close out 2023,” Chairman and CEO Henrik Fisker said in a statement. “We may not have hit our original forecast but taking current market conditions and negative sentiments around EV sales into account, I would say we are doing quite well, as we continue to accelerate sales and deliveries. This is yielding considerable revenue as we ramp up our business. I expect by the end of this year we will have delivered more customer cars than any Western EV startup did in their first year of deliveries. The company continues to sharpen its focus on growing its current markets and enhancing our sales and service offerings for the Fisker Ocean.”

    Fisker said in its business update that it has also launched a new strategy to improve deliveries in the U.S. and Europe, which helped it overcome early logistics hurdles. While Fisker didn’t elaborate on exactly what those challenges were, it appears the strategy involves adding more transportation logistics companies to speed up deliveries, increased outreach to reservation holders and opening more facilities dedicated to retail, deliveries and service.

    The company said it’s also launching a leasing program in the U.S., Canada and Europe, but didn’t include details on when that might occur.

    Fisker also provided an update around hiring, importantly Dan Quirk as its new executive vice president of finance and accounting. The hiring comes after Fisker lost two chief accounting officers in short succession and delayed the filing of its quarterly earnings report with the Securities and Exchange Commission. Other hires include Axel Buhr as vice president of finance and controller operations, Ram Iyer as senior VP of EE integration and validation and Wolfgang Hoffmann as country manager in Canada, where Fisker is about to begin deliveries.

    Kirsten Korosec

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  • Fisker Stock Is Down Again. It’s Still Feeling the Weight of Late Filing, Executive Departures.

    Fisker Stock Is Down Again. It’s Still Feeling the Weight of Late Filing, Executive Departures.

    Fisker stock continues to be volatile in the aftermath of accounting control issues that led to unexpected management turnover.

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  • Fisker Delivered Just 11 EVs. Why the Stock Is Falling.

    Fisker Delivered Just 11 EVs. Why the Stock Is Falling.

    Fisker Delivered Just 11 EVs. Why the Stock Is Falling.

    Fisker earnings, reported Friday morning, topped analyst expectations, but that was the extent of the good news.

    An error has occurred, please try again later.

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  • GM, Ford Say They Aren’t Running Twitter Ads As They Assess Changes Under Elon Musk

    GM, Ford Say They Aren’t Running Twitter Ads As They Assess Changes Under Elon Musk

    Elon Musk’s takeover of Twitter has many users worried about changes to the site under the mercurial billionaire, including big corporate advertisers. Auto giants General Motors and Ford were among the first to say they won’t be putting ads on the platform until they understand the scope of those changes.

    “We are engaging with Twitter to understand the direction of the platform under their new ownership,” the Detroit-based automaker said in an e-mail statement late Friday. “As is the normal course of business with a significant change in a media platform, we have temporarily paused our paid advertising. Our customer care interactions on Twitter will continue.”

    Ford is “not currently advertising on Twitter,” said spokesman Said Deep. “We will continue to evaluate the direction of the platform under the new ownership.”

    Like GM, it will also keep engaging with Ford customers on the site.

    The moves coincide with Musk’s attempt to calm Twitter advertisers who may be worried that his comments about being “free speech absolutist” mean the site will be more welcoming to extremist viewpoints, racism and broadly offensive content. Musk said Twitter can’t become “a free-for-all hellscape” ahead of the purchase and tweeted on Friday that he was creating a “content moderation council with widely diverse viewpoints” to set new ground rules.

    Both GM and Ford are also looking to take electric vehicle market share away from Musk’s Tesla, the world’s top EV brand. Advertising on a platform owned by the man who also leads a rival carmaker creates an unusual situation. French automaker Citroёn acknowledged as much in a cryptic tweet on Friday.

    “Hello to the social media platform owned by one of our competitors,” the company said without elaborating.

    Hyundai and Kia, which are also aggressively ramping up EV sales, weren’t immediately able to comment on the matter.

    Smaller electric vehicle companies, including Lucid, Rivian and Fisker, told Forbes they had no plans to change their use of Twitter. All three are in startup mode, particularly Fisker, which launches its first model, the battery-powered Ocean SUV, next month.

    Still, Fisker CEO and cofounder Henrik Fisker, who’s had legal and professional clashes with Musk, deleted his personal Twitter account in April after the platform agreed to Musk’s purchase offer.

    GM’s move was reported earlier by CNBC.

    Alan Ohnsman, Forbes Staff

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