The Troubles of Fisker: Disorganization and Financial Woes

Internal Audit Reveals Financial Mismanagement

Fisker, a company on the verge of bankruptcy, recently faced a setback when talks with a major automaker fell through. While the EV market slowdown played a role, internal issues have also plagued the startup. An internal audit was initiated after checks went uncashed or were lost, leading to millions of dollars in customer payments temporarily misplaced.

Lack of Financial Transparency

Concerns about Fisker’s financial transparency were further highlighted when the company struggled to provide accurate sales data for its annual report. PricewaterhouseCoopers (PWC) discovered discrepancies, indicating a broader issue within the company’s financial management.

Operational Challenges and Customer Impact

Operational challenges extended beyond financial mismanagement, with reports of delayed payments to state DMVs affecting customer registration processes. This administrative disarray has left some customers driving with temporary license plates due to registration delays.

Desperate Measures: Price Cuts to Stay Afloat

In a bid to generate revenue and address financial instability, Fisker announced significant price cuts for its 2023 Ocean SUV models. The price reductions aim to attract buyers and stabilize the company’s financial position amidst ongoing challenges.