Fisker, the electric vehicle startup, has been grappling with a significant internal crisis. The company temporarily lost track of millions of dollars in customer payments as it scaled up deliveries. This led to an internal audit that started in December and took months to complete. The company was ultimately able to track down a majority of those payments or request new ones from customers whose payment methods had expired. However, this disarray took employees and resources away from Fisker’s sales team at a critical time.
The company struggled to keep tabs on transactions, which included down payments and in some cases, the full price of the vehicles, due to lax internal procedures for keeping track of them. In a few instances, it delivered vehicles without collecting any form of payment at all. This internal confusion put the company in a position where it couldn’t accurately say how much revenue it had generated. This is one of the reasons Fisker has yet to file its annual financial report for 2023.
The situation has left Fisker on the brink of bankruptcy. The company has halted production of its only vehicle, the Ocean SUV, after running into trouble and struggling with a number of quality problems. It has warned that it may not be able to continue operations without a fresh infusion of cash. This week, the New York Stock Exchange suspended trading and delisted the company, increasing the likelihood that it won’t be able to raise money to survive.
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