- Fisker faces an investigation from the U.S. Securities and Exchange Commission.
- We don’t know exactly what the agency is looking into.
- It’s the latest wrinkle in the startup automaker’s long bankruptcy saga.
The U.S. Securities and Exchange Commission (SEC) is investigating bankrupt EV startup Fisker, the regulatory agency said in a filing on Friday.
After months of back and forth, Fisker and its creditors recently arrived at a liquidation plan, which is up for final approval on October 9. On Friday, the SEC filed an objection to the plan in U.S. bankruptcy court, wherein it said it is investigating Fisker.
TechCrunch first reported on the filing and the revelations about the SEC’s investigation on Friday.
“The Commission is currently investigating whether the debtors, and others, may have violated the federal securities laws in connection with Fisker’s prepetition activities,” the SEC said. (Prepetition refers to the period before filing for bankruptcy.)
The SEC also said the plan needs to better protect the agency’s ability to conduct its investigation. It proposed adding language requiring Fisker to preserve its corporate records until either the bankruptcy court or the SEC says otherwise.
“[T]he Plan must contain language … to adequately preserve the Commission’s police and regulatory powers with respect to its pending investigation (including the preservation and production of corporate records) and possible future actions alleging violations of the federal securities laws,” the agency said in Friday’s filing.
Fisker officials did not return a request for comment. An SEC spokesperson told InsideEVs that the body “does not comment on the existence or nonexistence of a possible investigation.”
The agency did not specify what exactly it’s looking into, but noted that it “has an ongoing police and regulatory interest in the Debtors’ books and records”—the debtors being Fisker Inc. and affiliated companies. It also said it has “outstanding investigative subpoenas and may have the need to request or subpoena additional documents in the future relating to its ongoing investigation.”
Fisker disclosed back in August that it had received a subpoena from the commission.
Fisker, a California-based EV firm, launched its first and only vehicle, the Ocean crossover, in the summer of 2023. It struggled to ramp up sales and iron out bugs in the car, which led to several recalls. Fisker filed for bankruptcy in June, after producing some 10,000 Oceans through Magna, a contract manufacturer. It struck a deal to sell its remaining inventory of roughly 3,000 vehicles to a leasing company in New York.
Contact the author: tim.levin@insideevs.com
Fisker, the electric vehicle startup, is currently under investigation by federal authorities for potential violations of securities laws. The news comes as a blow to the once-promising company, which had been gaining momentum in the competitive EV market.
The investigation is said to be focused on Fisker’s financial disclosures and practices, particularly in regards to its projections and statements regarding its business prospects and financial health. The Securities and Exchange Commission (SEC) and the Department of Justice are reportedly looking into whether Fisker may have misled investors or engaged in other fraudulent activities.
This is not the first time Fisker has come under scrutiny for its business practices. The company has faced criticism in the past for its ambitious goals and the high level of competition in the EV industry, as well as its reliance on government subsidies and incentives to support its operations.
Fisker had been seen as a rising star in the EV world, with its sleek and stylish vehicles capturing the attention of consumers and investors alike. However, the latest news of the federal investigation has cast a shadow over the company’s future prospects.
In response to the investigation, Fisker has stated that it is fully cooperating with federal authorities and is committed to addressing any issues that may arise from the investigation. The company has also emphasized its commitment to transparency and accountability in its business operations.
The news of Fisker’s federal investigation serves as a reminder of the challenges faced by companies in the fast-paced and competitive EV market. As the industry continues to grow and evolve, companies must navigate regulatory hurdles and maintain the trust of investors and consumers to succeed.
Only time will tell how Fisker will weather this latest storm and whether the company will be able to regain its footing in the ever-changing landscape of the electric vehicle market. In the meantime, investors and industry watchers will be keeping a close eye on developments as the investigation unfolds.