Fisker Inc. bankruptcy looms as latest SEC filing shows it has defaulted on a $3.5 million loan


A recent 8-K filing submitted by Fisker Inc. is painting a grim picture for the EV automaker’s future. The filing states that Fisker failed to pay back a loan totaling close to $3.5 million last month, lowering a potential curtain on the second iteration of the company that is staring down the barrel of potential bankruptcy.

The saga of Fisker 2.0 continues, but unfortunately could soon be nearing its end, offering sunset on the ill-fated Ocean SUV – a EV that came as close as you can get to making it.

Like we always say, however, scaling is hard.

We applauded Fisker for successfully launching its flagship Ocean EV, but it was quickly moored by several software issues and lower-than-anticipated sales. To rebound, the automaker lowered its production targets several times throughout 2023 and even started pulling new demand levers to try and maintain liquidity.

In March 2024, Fisker’s fiscal year 2023 detailed a grim image of “substantial doubt” it could continue. With talks of “bankruptcy” starting to float around, the American automaker shared a new strategy to secure financial backing from an OEM partner. We saw those “talks” come and go and Fisker has been fighting for its life to avoid bankruptcy since.

Soon, Fisker’s stock took a nosedive after it halted Ocean production at Magna-Steyr in Austria, as it slashed tens of thousands off Ocean MSRPs to liquidate its existing inventory of assembled vehicles.

Appealing discounts be damned, the public has grown adverse to buying an EV from an automaker on the cusp of bankruptcy, and tens of thousands of reservation holders canceled their Ocean orders.

In early May, we reported that Fisker GmbH, the Austrian arm of Fisker Inc., had filed for reorganization and court protection from creditors overseas—a filing similar to Chapter 11 bankruptcy in the US, leaving Magna with a hole in its projected output numbers that were expected to be assembling Ocean EVs.

Most recently, we’ve learned that shortly after that filing overseas, Fisker failed to make a large payment on an existing loan in the millions, spelling more evidence of its failure to continue in the EV segment.

Henrik Fisker presenting the first Ocean SUV model (Source: Fisker)

Fisker bankruptcy appears imminent after missed payment

According to an 8-K filing submitted to the SEC by Fisker Inc. on May 29, 2024, the automaker had been notified by Noteholder CVI Investments, Inc. that it had failed to make a repayment due on May 10, 2024, resulting in a default on a loan totaling $3,456,000. CVI Inc. wants its money. Per the filing:

On May 29, 2024, the Noteholder notified the Company that it is exercising its rights pursuant to Sections 4(b) of the 2024 Note to accelerate the 2024 Note by requiring the Company to immediately redeem 100% of the outstanding 2024 Note at the Event of Default Redemption Price, including any applicable Interest, Late Charges, Redemption Premium, and other amounts due under the 2024 Note.

So with millions owed in loans and the lomking threat of late fees and applicable interest, Fisker may need to scrap together what is left to make good on its loan, although the repayment (of whatever amount) may result in bankruptcy.

We’ve been seeing this coming for quite some time, so Fisker’s looming bankruptcy is not exactly breaking news. However, this latest hurdle could potentially knock Fisker redux out again. We never like to see EV startups fail, but that is the sad reality of the industry.

This story is ongoing, and we will watch Fisker’s financial movements closely to keep you informed. Stay tuned.

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