Sloppy bookkeeping had Fisker scrambling to collect what it was owed.
Key Takeaways
- Fisker’s messy bookkeeping led to millions in missing payments, including down payments and even full vehicle costs.
- Internal confusion resulted in lost paperwork, misplaced checks, and struggling to track revenue for the year.
- Fisker faces an uncertain future with a production pause, failed deals, and price cuts pointing towards potential bankruptcy.
The general rule of thumb when you buy a car is that whoever is selling it to you secures payment before handing over the keys. It doesn’t matter whether you’re buying a used car or a new one, you don’t drive away until they know they’re getting paid. Unless the seller in question is Fisker.
Thanks to some sloppy bookkeeping, the company lost track of who paid what and had to backtrack to make sure it had all the money it was owed. We’re not talking about just a car or two. This amounted to millions of dollars and resulted in an internal audit in December.
Missing Money
The missing money included down payments and, in certain cases, the full price of the vehicle. Even more surprising is that Fisker went ahead and delivered the Ocean to some customers without collecting any money. At all. You have to wonder what those people thought when it looked like Fisker gave them a free car.
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The confusion came down to lots of misfiled paperwork. This left employees scrambling. There were issues figuring out whether checks were cashed with some completely lost. Wire transfers and credit card receipts were also misplaced, requiring reaching out to customers for updated information.
The Future of Fisker
The situation caused enough of a problem that the company couldn’t figure out just how much revenue it had for the year. This is part of the reason why it hasn’t filed a 2023 financial report yet. When that report does come, it’s likely not going to show a positive outlook for the future of the company.
It’s been a rough few weeks for the struggling EV startup. Earlier this month, it paused production for six weeks as it awaited $150 million in funding. More recently, a potential deal with another automaker fell through, further putting its future in question. Then on Wednesday, it dramatically cut prices in what appears to be an effort to reduce inventory as bankruptcy looms. Missing customer payments seems like the least of its problems.
