In a move signaling potential trouble for electric vehicle manufacturer Fisker, reports have emerged of the company beginning the process of shutting down its main headquarters in Manhattan Beach, California. Sources within the company have revealed that employees were asked to gather their belongings as part of a relocation to the company’s R&D facility in La Palma, California, approximately 40 miles away.
The company has been grappling with significant financial difficulties throughout 2024, with the extent of its troubles coming to light after a recent expose by the Wall Street Journal. The report indicated that Fisker had only “weeks” of cash reserves left, prompting concerns about its future viability.
The situation worsened for Fisker following a scathing review of its Fisker Ocean model by popular tech YouTuber Marques Brownlee, who labeled it the “worst car he’s ever reviewed.” This further damaged the company’s reputation and compounded its financial woes.
Fisker had been in talks with Nissan for a potential deal, which appeared promising. However, the deal fell through, leading to Fisker’s delisting from the New York Stock Exchange.
In a recent communication to employees, Fisker acknowledged the challenges it faces, stating, “Fisker is operating under challenging circumstances and we are making every effort to work towards an outcome that facilitates new investment or other strategic solutions.”
Despite these difficulties, Fisker has not announced plans to cease operations entirely. However, the company’s recent closure of much of its service network and the cannibalization of pre-production cars to fix customer vehicles have raised concerns about its future.
The expansion of dealerships in recent weeks has been seen by some as an attempt to liquidate existing vehicle stock, particularly as supplier Magna International has paused future production of the Fisker Ocean.
California’s Employment Development Department has not yet listed a Worker Adjustment and Retraining Notification (WARN) Act notice filing for Fisker, indicating that the full extent of the potential job losses remains unclear.
As Fisker navigates these challenges, the future of the company hangs in the balance, with employees and investors alike waiting anxiously for news of its fate.
