No wonder they have no money! Hehehe! This is crazy!
$Fisker(FSRN.US$ Fisker temporarily lost track of millions of dollars in customer payments as it scaled up deliveries, leading to an internal audit that started in December and took months to complete, TechCrunch has learned.
The EV startup was ultimately able to track down a majority of those payments or request new ones from customers whose payment methods had expired. But the disarray, which was described to TechCrunch by three people familiar with the internal payment crisis, took employees and resources away from Fisker’s sales team at a time when the company was attempting to save itself by restructuring its business model.
Fisker struggled to keep tabs on these transactions, which included down payments and in some cases, the full price of the vehicles, because of lax internal procedures for keeping track of them, according to the people. In a few cases, it delivered vehicles without collecting any form of payment at all, they said.
“Checks were not cashed in a timely manner or just lost altogether,” one of the people told TechCrunch. “We were often scrambling to find checks, credit card receipts and any wired funds a few months after a vehicle was sold.”
Alongside the internal audit, outside auditor PwC was asking Fisker for more documentation about its vehicle sales as part of the process of putting together the company’s annual financial report, according to two of the people. Fisker was often unable to provide satisfactory documentation, leading to more requests from PwC.
“Paperwork being collected wasn’t always being collected in full, or sent to the same places,” another one of the people said.
These sources requested anonymity because they were not authorized to talk to the press about internal matters.
This internal confusion had put the company in a position where it couldn’t accurately say how much revenue it had generated, according to the people, who noted it is one of the reasons Fisker has yet to file its annual financial report for 2023.
Tracking down the payments may wind up offering little solace to the startup, which is on the brink of bankruptcy. Fisker has paused production of its only vehicle, the Ocean SUV, after running into trouble meeting internal sales goals and struggling to support customers dealing with a number of quality problems. It has alerted investors that it may not be able to continue operations without a fresh infusion of cash
The EV startup was ultimately able to track down a majority of those payments or request new ones from customers whose payment methods had expired. But the disarray, which was described to TechCrunch by three people familiar with the internal payment crisis, took employees and resources away from Fisker’s sales team at a time when the company was attempting to save itself by restructuring its business model.
Fisker struggled to keep tabs on these transactions, which included down payments and in some cases, the full price of the vehicles, because of lax internal procedures for keeping track of them, according to the people. In a few cases, it delivered vehicles without collecting any form of payment at all, they said.
“Checks were not cashed in a timely manner or just lost altogether,” one of the people told TechCrunch. “We were often scrambling to find checks, credit card receipts and any wired funds a few months after a vehicle was sold.”
Alongside the internal audit, outside auditor PwC was asking Fisker for more documentation about its vehicle sales as part of the process of putting together the company’s annual financial report, according to two of the people. Fisker was often unable to provide satisfactory documentation, leading to more requests from PwC.
“Paperwork being collected wasn’t always being collected in full, or sent to the same places,” another one of the people said.
These sources requested anonymity because they were not authorized to talk to the press about internal matters.
This internal confusion had put the company in a position where it couldn’t accurately say how much revenue it had generated, according to the people, who noted it is one of the reasons Fisker has yet to file its annual financial report for 2023.
Tracking down the payments may wind up offering little solace to the startup, which is on the brink of bankruptcy. Fisker has paused production of its only vehicle, the Ocean SUV, after running into trouble meeting internal sales goals and struggling to support customers dealing with a number of quality problems. It has alerted investors that it may not be able to continue operations without a fresh infusion of cash
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Jaguar8 : Poor management in total disarray.
TrytosaveabitOP Jaguar8: You think? Hehehe! Crazy as hell isn’t it! Wow
Jaguar8 TrytosaveabitOP: If I’m the customer I’ll be damn mad. This type of company do not deserve to exist
DeKingVibez : His wife needs to be buried alive. And henrik on electric chair right now.. it shall never be well with his whole family
TrytosaveabitOP Jaguar8: Very true! Unless they lost the payment all together, especially after they marked account paid! Can you say free car! Hehehe
Jaguar8 TrytosaveabitOP: Maybe the management is high on cocaine or meth that he forgot about managing? Or maybe he hired the wrong people who cannot even give good inputs. Haha
Forever 365 : How F can be from $32 to .02 cents ?
TrytosaveabitOP Forever 365: A few different things caused it! From not a big enough market for EV’s to terrible management! And Short sellers driving price down made the company’s market cap so low that makes it hard for others to actually partner with them because financially it don’t look good! Among other things
Greener : I really appreciate your breakdowns in your information. you are extremely helpful and I follow you religiously. But I have a few discrepancies with this. what you posted said they misplaced checks. They didn't accept checks as a form of payment. It also said that invoices were lost in misplaced and payments weren't received on delivery. everything through Fisker was done by computer. you had to put $100 down upon application to hold a vehicle. And then you had to put a $5,000 non-refundable payment down to order the vehicle. I don't think it would have took much more than one good accountant a few hours a week to keep track of all that. they've sold less than 10,000 vehicles since 2013. And then it says multiple people and resources had to be used to find all of the lost invoices checks and orders. did they lose all 10,000 of them. It shouldn't take more than one or two people a month to find a few thousand lost invoices or payments and deliveries. I just can't believe it took an entire team of people. I wonder who their accounting firm was. in this day of technology and the type of tech nerd Henry Fisker is this should never have happened. And I honestly have a hard time believing it did. I'm not blaming you. I understand you're just reposting someone else's literature. And once again I appreciate all your info and help. It's just a lot of the information that Fisker has been putting out over the last 2 months seems inaccurate or even hard to believe at times. A lot of contradictions. this whole article should have never even seen the light of day. I'm pretty sure these supposed three people signed NDAs. after all they were dealing with important confidential financial information.
TrytosaveabitOP Greener: Yup! It was a direct quote from Sean O’Kane from TECHCRUNCH! Im going to post a bit more of the article in the main chat because it won’t let me here! No apology necessary! You were very kind in your explanation/criticism/disagreement! And I’m all about that? So yes! You’re very welcome! And thank you for your kind words!
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