Fisker, the electric vehicle startup that recently filed for Chapter 11 bankruptcy, is now facing scrutiny from the U.S. Securities and Exchange Commission (SEC). According to a newly released filing, the SEC has issued multiple subpoenas to Fisker as part of a broader investigation that could lead to allegations of violations of federal securities laws.
While the SEC has not disclosed the specific nature of the investigation, its implications could be significant for the beleaguered company. Fisker has yet to respond to requests for comment, and the SEC has stated it does not comment on ongoing investigations, leaving many questions unanswered.
This investigation follows a tumultuous few months for Fisker, which has been trying to navigate the aftermath of its bankruptcy filing. The company has focused on liquidating its remaining vehicle fleet and reaching agreements with creditors to facilitate this process. Recently, Fisker reached a settlement plan regarding its asset liquidation, but the SEC has raised concerns, filing an objection to this plan. The agency expressed worries about inadequate protections for its ability to continue pursuing the investigation and emphasized the lack of clarity regarding the preservation of Fisker’s corporate records.
The SEC's filing highlights the ongoing nature of its inquiry, noting that it may request additional documents as the investigation unfolds. Despite previous disclosures from Fisker regarding an SEC subpoena, the company has not officially confirmed its investigative status.
Fisker’s decline began when the company struggled to deliver its Ocean SUV to a larger customer base, failing to meet internal sales targets. The company's financial difficulties became evident when it attempted—and ultimately failed—to shift from a direct sales model to one involving dealership partners. Management instability further complicated matters, as the company cycled through several chief accounting officers and faced delays in financial reporting, putting additional pressure on its operations. Reports from former employees suggested significant financial mismanagement, including a troubling incident in which the company allegedly lost track of $16 million in customer payments, a claim Fisker has denied.
As Fisker attempts to restructure and address its financial woes, the looming SEC investigation adds another layer of uncertainty to its future. How the company navigates these challenges will be crucial not just for its own recovery but also for the broader electric vehicle market, which has been closely watching the startup's trajectory. The coming weeks will be pivotal as stakeholders await further developments in both the bankruptcy proceedings and the SEC’s investigation.
