- 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 Is Under Investigation By The Feds
Fisker Automotive, the pioneering electric vehicle manufacturer, is currently under investigation by federal authorities for potential violations of securities laws. This development comes as a significant blow to the company, which has long been considered a trailblazer in the field of sustainable transportation.
The investigation, which is reportedly being conducted by the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ), centers around allegations of misleading investors and misrepresenting the financial health of the company. It is believed that Fisker may have overstated its revenue and exaggerated its growth prospects in order to attract investment.
Fisker has a tumultuous history, having faced financial difficulties and production setbacks in the past. The company has struggled to compete with larger, more established electric vehicle manufacturers, such as Tesla, and has had to rely on government subsidies and investor funding to stay afloat.
The news of the federal investigation has sent shockwaves through the industry, prompting concerns about the future of Fisker and the integrity of the electric vehicle market as a whole. Investors and industry analysts are closely monitoring the situation, awaiting further updates on the investigation and its potential implications.
In response to the allegations, Fisker has issued a statement assuring stakeholders that it is fully cooperating with federal authorities and is committed to transparency and compliance with all applicable laws and regulations. The company has also pledged to conduct a thorough internal review of its financial practices and governance structure.
As the investigation unfolds, the future of Fisker remains uncertain. The company’s ability to weather this storm and emerge stronger will depend on its ability to address the issues raised by federal authorities and rebuild trust with investors and consumers alike.
In conclusion, the news of Fisker’s investigation by the feds is a sobering reminder of the challenges facing the electric vehicle industry and the need for companies to operate with honesty and integrity. The outcome of this investigation will have far-reaching implications for Fisker and the broader sustainable transportation sector. It is imperative that all stakeholders closely monitor the situation and hold Fisker accountable for any wrongdoing that may be uncovered.