EV Startup Fisker Struggles to Stay Afloat Amid Layoffs and Funding Woes

2 mn read

The electric vehicle industry has seen its fair share of ups and downs, and Fisker, a once-promising EV startup, is now facing a fight for survival. The company, founded by renowned car designer Henrik Fisker, has recently laid off hundreds of employees as it scrambles to secure funding, find a buyer, or potentially file for bankruptcy.

Troubles at Fisker have been brewing for months, despite the company successfully launching its first and only vehicle, the Ocean SUV, less than a year ago. The latest round of layoffs, announced during an all-hands meeting on Wednesday, has left an estimated 150 people at the company, down from over 1,100 in April.

Sources familiar with the matter suggest that the chief restructuring officer, working on behalf of a large investor to whom Fisker owes money, pushed for the extensive cuts. While the identity of this investor remains undisclosed, Henrik Fisker reportedly mentioned Heights Capital Management, an affiliate of Susquehanna International Group, during the meeting.

Despite the somber tone of the all-hands meeting, Henrik Fisker remained determined, emphasizing that the company had built “something great” and would continue to sell the Ocean SUV to interested buyers. He also hinted at the possibility of rehiring laid-off workers once the company regains its footing.

Many employees discovered their fate when they lost access to Microsoft services like Teams and Outlook, while others received an email officially announcing their termination with a single week of severance pay. Affected workers have taken to LinkedIn to share their experiences and express their disappointment.

The challenges faced by Fisker serve as a stark reminder of the difficulties in breaking into the highly competitive EV market, even for a company with a well-known founder and a unique product offering. As the startup navigates this tumultuous period, industry observers will be closely watching to see if Fisker can secure the necessary funding or find a strategic partner to help it weather the storm.

The EV landscape continues to evolve rapidly, with established automakers and new entrants vying for a piece of the growing market. While some startups have thrived, others, like Fisker, have encountered significant obstacles along the way. As the industry matures, it remains to be seen which companies will emerge as the leaders in the race to electrify transportation.

For now, Fisker’s future hangs in the balance as it seeks to overcome its financial challenges and chart a path forward. The company’s dedicated workforce and innovative design have the potential to make a mark in the EV world, but only time will tell if Fisker can rise from the ashes and realize its vision of a sustainable, stylish, and affordable electric vehicle for the masses.

To learn more about the electric vehicle industry and its key players, check out these resources:

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