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What Happened to Fisker in May 2024?

Fisker faced mounting financial and operational concerns in May 2024, but the U.S. Chapter 11 case began June 19. Here’s what happened and what each development meant.
From TheFinanceBase Team3 min to read

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May 2024 brought three significant developments for Fisker: its Austrian subsidiary, Fisker GmbH, said it would seek insolvency protection through self-administration; Fisker Inc. disclosed that PwC would not return as its auditor for the 2024 audit; and U.S. regulators opened an investigation into reports of unexpected braking in the Fisker Ocean. None of those events was a U.S. Chapter 11 filing: Fisker Inc. and U.S. subsidiaries filed in June, not May.

Fisker’s May 2024 timeline

Date Development What it meant
March 22 Fisker disclosed that negotiations with an unnamed large automaker had ended. The company said it would continue evaluating strategic alternatives; the filing did not say an alternative had been secured.
May 7 Fisker GmbH announced it would seek self-administration in Austria. This concerned the Austrian entity, not a U.S. bankruptcy filing. The announcement said other Fisker entities continued ordinary operations at that time.
May 7 Fisker disclosed that PwC would decline reappointment as its independent auditor for the 2024 audit. Fisker said there was no dispute with PwC. Its filing also discussed prior going-concern and internal-control concerns.
May 8 NHTSA opened investigation PE24013 into reports of inadvertent automatic emergency braking in model-year 2023 Ocean vehicles. An investigation opening is not a finding that a defect existed.
June 19 Fisker Inc. and U.S. subsidiaries commenced Chapter 11 proceedings. This later event must not be described as having happened in May.

Did Fisker file for bankruptcy in May?

No U.S. Chapter 11 case began in May. On May 7, Fisker GmbH, the Austrian entity, announced that it would seek protection through self-administration in Austria. That is distinct from the Chapter 11 proceedings begun by Fisker Inc. and other U.S. subsidiaries on June 19. The dates and entities matter: Austria’s May insolvency step was not the U.S. parent’s later court filing.

Why did PwC leave Fisker?

Fisker’s May 7 filing said PwC informed the company it would decline reappointment for the integrated audit of fiscal year 2024. Fisker stated that there was no dispute between the company and PwC; the filing does not give a different reason for the decision.

The same filing described material weaknesses in internal controls previously disclosed in Fisker’s 2023 Form 10-K. These included problems involving financial-reporting staffing, information-sharing between departments, inventory and revenue accounting, and controls for complex or unusual transactions. It also noted that the 2023 auditor report included an explanatory paragraph concerning substantial doubt about Fisker’s ability to continue as a going concern. Those disclosures provide important financial-reporting context, but they do not establish that the auditor’s decision resulted from a dispute.

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What happened with the Fisker Ocean braking investigation?

On May 8, NHTSA’s Office of Defects Investigation opened PE24013 after receiving reports of inadvertent automatic emergency braking in model-year 2023 Fisker Ocean vehicles. The reports described braking without an apparent obstruction ahead and sudden deceleration without adequate warning or driver input. Reported severity ranged from a brief loss of speed to a complete stop in a travel lane.

These were reported allegations under investigation, not proof that every Ocean—or any particular vehicle—had a confirmed defect. In a later case summary, ODI said it was aware of more than 20 reports. That is a count of reports known to ODI, not a verified count of unique affected vehicles or confirmed defect incidents. The later summary said the available information did not warrant further action at the time of closure, while cautioning: “The closing of this investigation does not constitute a finding by NHTSA that a safety-related defect does not exist.” That later disposition was not a May development.

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What was Fisker’s financial position heading into May?

Fisker had disclosed on March 22 that transaction negotiations with a large automaker had ended. The company’s SEC filing said: “Following such termination, the Company continues to evaluate strategic alternatives.” It identified possibilities such as restructuring, financing, asset sales, or another transaction, but did not establish that any one of them had been completed or secured. The Austrian insolvency announcement, auditor non-reappointment, and control disclosures followed against that backdrop of acute financial distress.

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