Fisker’s Flub Puts Trading Firm in the Driver’s Seat
Accounting lapses matter, as do the terms of convertible debt agreements.
A 2023 Fisker Ocean One sports utility vehicle during the Montreal Electric Vehicle Show on Friday, April 19, 2024.
Photographer: Graham Hughes/BloombergBecoming a public company entails big responsibilities, among them the requirement to promptly file audited accounts. Fisker Inc.’s peril shows what happens when neophytes fail to get the basics right. Sophisticated lenders have ways to protect themselves, while retail investors could be left holding the bag.
The California-based electric-vehicle maker has warned it may file for bankruptcy within weeks, following operational challenges ranging from logistics problems to an ill-conceived sales model and buggy software. Having gone public in 2020 via a special purchase acquisition company, the startup has paused production, slashed prices and laid off hundreds of employees.