Fisker

Henrik Fisker founded his second EV company after his first, Fisker Automotive, went bankrupt in 2013 — a red flag that SPAC investors largely ignored. The new Fisker Inc. merged with Spartan Energy Acquisition Corp in October 2020, raising capital to develop the Fisker Ocean, a mid-priced electric SUV.

For a while, things looked promising. Fisker secured a manufacturing agreement with Magna International, avoiding the capital-intensive step of building its own factory. The Ocean began deliveries in mid-2023, and the design received positive initial reviews. But problems surfaced quickly.

The Ocean suffered from severe software glitches, including issues with braking, battery management, and infotainment systems. Customer complaints piled up. Fisker struggled to fix bugs fast enough and lacked the software engineering depth of competitors like Tesla. Meanwhile, the company burned cash at an alarming rate, spending heavily on marketing and operations while struggling to scale production.

By early 2024, Fisker was in crisis. A potential rescue deal with Nissan fell through, and the company disclosed it had only $121 million in cash. Fisker paused production, laid off staff, and filed Chapter 11 bankruptcy in June 2024. Approximately 4,700 Ocean SUVs were sold at steep discounts during liquidation. Henrik Fisker had now bankrupted two EV companies bearing his name.