Fisker had big dreams to compete with Tesla. What went wrong with this Manhattan Beach company?
A decade ago, respected automobile designer Henrik Fisker was coming off the bankruptcy of his first car company when he contemplated his comeback. Instead of a luxury hybrid sedan, what he envisioned was an all-electric SUV that would appeal to the masses with its lower price and California beach-inspired design.
The Danish native put the car on the road last year, when his new Manhattan Beach company, Fisker Inc., released the Ocean. The midsize crossover features a full-length solar roof, an interior composed of “vegan” recycled plastic and a drop-down rear window that can fit a surf board. Starting price of the base model: $38,999.
The vehicle gathered design awards and the company initially projected it would make as many as 42,400 vehicles in its first year. Instead, Fisker produced just 10,193 vehicles at its contract manufacturing plant and delivered 4,929 vehicles — racking up sales of $273 million, but losing $762 million in 2023.
More signs of distress emerged in recent weeks as Fisker announced it was cutting 15% of its 1,200-person workforce, halting production for six weeks and working on a deal for $150 million in new financing, dependent on forging a strategic relationship with a major auto manufacturer.
