Key Takeaways

• The once-promising EV startup is now facing likely bankruptcy.
• Former employees cited mismanagement by top executives as a major problem.
• Despite the challenges of working at Fisker, employees believed in the product and did what they could to make it a success.

Shoddy build quality. Recalls. Investigations. Missed deliveries. Fisker was supposed to be Henrik Fisker’s grand redemption with the Ocean leading the way. Instead, it’s on the verge of bankruptcy, with the demise of the company all but certain at this point. Barring a sudden infusion of cash or a last-minute partnership with another automaker, the dream of Fisker is over.

There are myriad reasons why this once promising electric vehicle start-up is now a cautionary tale, with rumored mismanagement from the highest levels at the top of the list. We spoke with several former Fisker employees who agreed to talk about their time at the company on condition of anonymity. One was let go in the most recent round of layoffs, while the other left of their own accord more than a year ago. But both tell the same story of how Fisker’s failure came from the top.

A Start Full Of Promise

Taking a job at a startup is risky, but it’s also exciting. There’s the possibility that whatever you’re working on could be the next big thing and that you’ll be a part of something incredible. Our recently laid off Fisker employee was thrilled with the idea of being a part of the automotive industry and especially the prospect of working at an EV startup. At first, Fisker lived up to his expectations.

“It was an interesting time, a good time to be there, because we hadn’t started production of the car yet, and everything was still so fresh and still growing at a fast pace.” – Former Fisker Employee

A year later, as the start of production got closer, it became apparent that things were not the way they looked on the surface. It wasn’t that the car was bad or that money was tight, but that leadership was doing things that quite simply didn’t make sense to anyone.

The most well-known executive at Fisker is CEO Henrik Fisker who is the voice of the company. His wife, Dr. Geeta Gupta-Fisker, serves as COO and CFO. This left the husband-and-wife team in charge of major decisions, but with a group of smart, talented employees to give them advice and guidance. The problem is, they refused to listen.

A Lack Of Leadership

“The actions taken by senior leadership were full of ‘I’m going to do whatever I want regardless of what you guys think is right,’” said the former employee. Last minute decisions were common, often without taking the time to make sure things were done right. It was all about getting it done immediately, no matter the consequences. “If Henrik wanted a press release about the Pear sent out on a Friday afternoon even when the team said it was a terrible idea, then the press release went out on a Friday afternoon.”

“When I had real exposure to Geeta, that’s when I started to think, oh, maybe I should get out.” – Former Fisker Employee

People tried to speak up but were often met with outbursts that are the stuff of HR nightmares. “She was yelling and screaming. After having that kind of interaction with her and hearing from other people that it was just how she was, I just felt like, what is happening?”

It was bad enough that good people simply left rather than take the abuse. “She went crazy during a meeting all my team were at. I got off the call and then pulled my team together to see if they were okay.” Often, the answer was no. “I had one person who left, saying ‘no way, my mental health is more important than this job, I’m not doing this.’ Micromanagement was the rule of the day.”

Another former employee who quit the company shared similar stories about the challenging work environment. “About nine months in, that’s when I started to see problems,” they said.

“You simply couldn’t speak up. You couldn’t tell them that they were wrong.” – Former Fisker Employee

There was no one to complain to either, as everything ended up being reported right back to the people causing the problems in the first place.

Holding Onto Hope

Despite the challenges and the lack of leadership, the people in the trenches never gave up hope that maybe, just maybe, they could make it all work. Since there was no real leadership, they took it on themselves to get things done. “There was a good set of people that were leaders, mid-level managers on down, and I think we kind of held each other together,” they said.

“It was almost like trauma bonding. We were helping each other get through it because we wanted the business to succeed.” – Former Fisker Employee

The hope and the money ran out after the company’s February earnings call. “I felt like it was so night and day. Everything seemed to be good, and then all of a sudden, we had the one earnings call, and then I felt like we went from, maybe we are a little bit low on cash to just destitute,” he said. Pricing on the Ocean was slashed and customers canceled reservations over fears of the company’s future. The layoffs started soon after and there was a sense that it was all coming to an end.

In April, conditional notices were sent to employees (a copy of which you can see above) stating that the outlook was bleak and that there was the possibility of everyone losing their jobs on June 28. The layoffs kept coming, and our source lost their job in May, but it’s not all bad. They might not have a paycheck coming in anymore, but they also doesn’t have the unrelenting pressure and stress of trying to make a dysfunctional company work.

“It was self-inflicted. All they have is what they both did.” – Former Fisker Employee

“I think I’m happy because I’m at peace, the madness is kind of over. I’m out of the tornado that was spinning around. My house has settled. I’m all banged up, but I’m okay,” they said. While the people who worked at Fisker may be okay, the company’s fate is far less certain.