It’s been a dramatic year for Fisker, the company once hailed as a serious contender in the electric vehicle (EV) market. Known for producing what Marques Brownlee (@MKBHD) infamously dubbed the "worst car [he'd] ever reviewed," Fisker is now facing bankruptcy, just nine months after launching its first model.
The Dream and the Downfall
Fisker burst onto the scene with bold ambitions, positioning itself to take on giants like Tesla. However, the reality has been far from the dream. Production has halted, leaving many to wonder: what went wrong?
The Ocean SUV: Promises vs. Reality
Fisker's inaugural EV, the Ocean SUV, came with high expectations. Promising nearly 400 miles per charge, a sleek design, and an attractive price tag of under $40,000, it seemed poised for success. But did it deliver? Not exactly.
Soon after the Ocean hit the market, reports of software malfunctions emerged, catching the attention of the National Highway Traffic Safety Administration (NHTSA). Investigations into braking issues and instances of the vehicle rolling away began to cast shadows over Fisker's bright future.
The Review That Shook the Market
In February, tech reviewer Marques Brownlee conducted an in-depth review of the Fisker Ocean. His verdict? The "worst car [he'd] ever reviewed." While he acknowledged the car's attractive design, it was overshadowed by numerous "weird choices" made by the company.
Unlabeled buttons, sunroof solar panels with no monitoring capabilities, and a slew of software glitches—from the keyfob to the cameras—left Brownlee unimpressed. He went as far as to say, "You could give me this car and I wouldn't want to drive it." Harsh, but honest.
The Fallout
Brownlee's review had an immediate impact. Fisker's stock plummeted by roughly 50%, and by late February, the company issued a "going concern" warning, laying off about 15% of its workforce.
But the issues went deeper than just a bad review. Fisker’s response to the criticism highlighted significant internal problems. A senior engineer reached out to the dealership that lent Brownlee the car, attempting damage control by admitting that Fisker's software "still got some holes in it." This response only served to underscore the company’s broader management issues.
A History of Failure
This isn’t CEO Henrik Fisker’s first venture to end in bankruptcy. His previous company, Fisker Automotive, also went under, marking a troubling pattern. The latest failure can largely be attributed to the complexities of producing and delivering Fisker EVs. Despite manufacturing over 10,000 Oceans by the end of 2023, only about 4,900 were successfully delivered to customers.
The Final Chapter?
Now, Fisker has filed for bankruptcy in Delaware, with assets ranging between $500 million and $1 billion and liabilities between $100 million and $500 million. As part of its restructuring efforts, the company will cut about 15% of its workforce.
Of course, Fisker's issues were far more extensive than a single YouTube review. As Brownlee reiterated in a tweet, "truth is they were doomed long before any of my videos."
But who knows? Given Fisker’s history, maybe the third time will be the charm. Or maybe it’s time for Henrik Fisker to reconsider his approach to the auto industry.