[doug]

Business research firm PrivCo did a rather comprehensive analysis of the Fisker saga and even produced a huge infographic.

The sad long story of Fisker Automotive, | VentureBeat

PrivCo press release: PrivCo -- Fisker Automotive's Road to Ruin: How a Billion-Dollar Startup Became a Billion-Dollar Disaster - WSJ.com

PrivCo -- Fisker Automotive's Road to Ruin: How a Billion-Dollar Startup Became a Billion-Dollar Disaster

NEW YORK, NY--(Marketwired - Apr 17, 2013) - After weeks of analysis by PrivCo's staff of attorneys, accountants and financial analysts, PrivCo has released its timeline detailing Fisker Automotive's "Road To Ruin," supplemented by never-before published documents.

See The Full Timeline Of Fisker's "Road To Ruin":
PrivCo | FISKER AUTOMOTIVE'S ROAD TO RUIN: Original Exclusive Documents Detail How a "Billion-Dollar Startup Became a Billion-Dollar Disaster": 2 of America's Smartest VCs - KLEINER PERKINS & NEW ENTERPRISE ASSOCIATES - & Others To Lose Over $1 Billion Dollars In "The Largest Venture Capital Investment Debacle in U.S. History"


Conclusions Sourced In PrivCo's Report:

-- With $1.3 Billion in venture capital and small private investor money
raised and spent in just 5 years, Fisker spent a stunning $660,000 for
each vehicle it produced, a vehicle that had a sticker price of $100,000

-- Fisker [produced] fewer than 2,200 vehicles in the company's lifetime, a third
of which remained unsold

-- U.S. Department of Energy took no action to enforce an issued "Drawdown
Stop Notice" under the "Consequences of Default" provisions of the Fisker
DOE Loan and Credit Agreement in June 2011

-- Fisker Automotive has less than $20 Million in cash on hand

-- 1,200 individual investors were induced to invest a total of $142M in now
worthless Fisker stock by a brokerage firm shuttered by S.E.C. for
fraudulent sales practices

-- Fisker's U.S. taxpayer loan and credit line repayment is due Monday,
April 22nd in the amount of $20.2 Million

-- Fisker to file for bankruptcy within days

PrivCo CEO Sam Hamadeh stated, "Fisker Automotive may well go down as the most tragic venture capital-backed debacle in recent history. The sheer scale of investment capital and government loan money -- over $1.3 Billion in all -- was squandered so rapidly and with so little to show for it that the wreckage is breathtaking. Bankruptcy will be the end of Fisker, but for the taxpayers, venture capital firms, individual investors, and Fisker's suppliers, it will all be too little too late."

 

[doug]

Typo in title. Should be PrivCo.

 

[ffcars]

This really does blow.

We all got took; as a tax payer and a customer.

 

[Sigurd]

This really does blow.

We all got took; as a tax payer and a customer.

I beg to differ. I have a vehicle that gets 285mpg over the last 2500 miles. Is that not the kind of innovation we should invest in? And, I still have my car and even though it has a #72 as the Signature Edition original early production
#, it is now performing perfectly. We should embrace this technology, not blame it like you and so many others do.

 

[pythagoras]

Yes I'd say this article presents the "facts" in such a way as to maximize self-righteous indignation of usual parties. Quoting the money spent per car when a series of bad luck and negative press stops sales is meaningless. Especially since the expenditures were so high because the government kinda wanted them to design TWO cars at once on a crazy timeline, but then got cold feet at full sprint while they had 600 employees already. Management should have cut the Atlantic as soon as loan was pulled but I guess they thought that's bad for momentum too.

 

[smoothoperator]

Worth it for me. Love my car and will never drive anything else. Thank God this gem of a car made it to market. The vast majority of people who write these articles have just read about the car and never have spent more than a few hours inside it and driving it. Gotta love the armchair critique.

Was Fisker mis-managed? Yep. The technical problems are overblown and are all fixed. There were some defective parts etc but all of that has been fixed. I still have not seen an article that talks about the present Karma. Seems like all articles are stuck in the past. Imagine if the rest of the "news" worked that way

 

[Arch fisker]

I'd like to know what other car companies have been required to spend to produce a completely unique and individual vehicle - and divide that cost by 2,000 units. Bad management aside, no startup ever makes really money on the first round, that is why its called development cost. How much per vehicle did Tesla spend on its first 2,000 vehicles? Chrysler, VW Jag, Ford? The only way these companies make a profit is by selling millions of the same vehicle.

Fisker is being slammed for getting 190 million of a federal loan, while Chrysler got how many Billions? Which would you rather drive - a Chrysler or Fisker?

I wish the public would stop bashing Fisker and embrace the fact that someone was willing to take a risk to produce something that was not just another example of the 'Proliferation of Sameness' that overhwelms our society today.

I am in this for the long haul, and I look forward to seeing the short sellers leave the conversation and go back to their mundane, conformist world.

 

[AnOutsider]

Especially since the expenditures were so high because the government kinda wanted them to design TWO cars at once on a crazy timeline, but then got cold feet at full sprint while they had 600 employees already.

You can't blame the gov't here. No one forced Fisker to take the funds. In the end, it accounted for about 15% of what they raised total.

Management should have cut the Atlantic as soon as loan was pulled but I guess they thought that's bad for momentum too.

They probably thought that was their saving grace and really, they needed to at least give the impression they were working on it to save face.

 

[Fabulist]

Business research firm PrivCo did a rather comprehensive analysis of the Fisker saga and even produced a huge infographic.

The sad long story of Fisker Automotive, | VentureBeat

PrivCo press release: PrivCo -- Fisker Automotive's Road to Ruin: How a Billion-Dollar Startup Became a Billion-Dollar Disaster - WSJ.com

TL; DR: Great car, lousy management, [Edited to Add:] and possible fraud on investors.

 

[ArtguySD]

I Couldn't disagree more!

This really does blow.

We all got took; as a tax payer and a customer.

Great car! I DIDN'T AND STILL DON'T WANT ANY OTHER CAR! I just do not want to have a vehicle that is uninspiring... When has a FOUR DOOR CAR ever looked so good?! IMO... The technology is amazing! It is a work of art. The car will go down in history for MANY reasons. There are rare vehicles on the road today because of peoples passion. Necessity is the mother of invention. If I had the resources I would purchase everyone I could get may hands on.

 

[pythagoras]

Yep the product deserves respect despite the messiness taken to get there.

Note the reference to sales fraud that the SEC cited Advanced Equities was on other deals, not the Fisker deal. Again the article is well edited to put things in most negative light ignoring the positives.

 

[doc]

I knew this car was worth $660,000!!!

 

[smoothoperator]

I knew this car was worth $660,000!!!

Actually it is not out of the realm. I wonder what Quantum sold their military vehicles that use series hybrid technology for? The Karma has 959lb/ft of torque; that is on par with a Veyron. We just need someone to unlock the full potential of this drive-train. The potential is there!

 

[Nin ja]

Look, stuff from the Buzz made it's way to the autoevolution site -- revenge in the caption ;-)

http://www.autoevolution.com/news/s...tes-unveiled-by-laid-off-employees-58173.html

 

[smoothoperator]

Look, stuff from the Buzz made it's way to the autoevolution site -- revenge in the caption ;-)

http://www.autoevolution.com/news/s...tes-unveiled-by-laid-off-employees-58173.html

That would make sense if I was a Fisker employee but I have never been; so I guess there was no "sweet revenge." Really wish they had sent me a message before taking the photo and posting it up on their blog. This is why we need an owners only forum either on this site or somewhere else.

 

[Eric Karma]

Great car! I DIDN'T AND STILL DON'T WANT ANY OTHER CAR! I just do not want to have a vehicle that is uninspiring... When has a FOUR DOOR CAR ever looked so good?! IMO... The technology is amazing! It is a work of art. The car will go down in history for MANY reasons. There are rare vehicles on the road today because of peoples passion. Necessity is the mother of invention. If I had the resources I would purchase everyone I could get may hands on.

If I could afford it, I would be competing with you to grab all those leftover Karma's!

What a wonderful image....my own climate controlled warehouse with 10 different color Fisker's....and of course other exotics.

 

[NJ Fisker Lawyer]

Guys, here's another very interesting article:
http://money.cnn.com/news/newsfeeds...ic_car_startup_fisker_crashed_and_burned.html

 

[Nin ja]

That would make sense if I was a Fisker employee but I have never been; so I guess there was no "sweet revenge." Really wish they had sent me a message before taking the photo and posting it up on their blog. This is why we need an owners only forum either on this site or somewhere else.

That was my thought as well when I saw it - we need a private forum... Maybe we create one in a private group on linked in?

 

[Fabulist]

Guys, here's another very interesting article:
http://money.cnn.com/news/newsfeeds...ic_car_startup_fisker_crashed_and_burned.html

The article's conclusion:

The worst part of the Fisker story could be the fallout for electric cars. Helping reduce America’s dependence on foreign oil and lowering the carbon emissions of personal transportation is necessary. Introducing more electric cars is one way to do that. But with the industry in such a fragile, nascent stage, Fisker could wind up delivering the knock-out blow.

Probably overstated, but Fisker's failure is definitely an obstacle to widespread adoption of EV/Hybrid cars, for reasons having nothing to do with the actual technology or the engineering.

 

[smoothoperator]

Probably overstated, but Fisker's failure is definitely an obstacle to widespread adoption of EV/Hybrid cars, for reasons having nothing to do with the actual technology or the engineering.

Widespread adoption will only occur when the price point comes down. This is something that is out of the hands of Fisker (and most every other hybrid/bev manufacturer). The technology needs to get better and only time will solve that problem. Even if/when Fisker fails, it will not be as bad as what happened to diesels (USA) in the late 70's-80's. The technology/cost is the barrier of entry not necessarily perception IMO.