SOURCE: PrivCo Media LLC

PrivCo Media LLC

April 17, 2013 14:44 ET

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":

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 sold 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."

See The Full Timeline Of Fisker's "Road To Ruin":

About PrivCo

Based in New York, PrivCo is the leading provider of private company financial data and business research. PrivCo publishes exclusive financial data on over 207,000 private companies, as well as over 78,000 private company deal details, including private company mergers & acquisitions, private equity and venture capital investments, leveraged buyouts, pre-IPO activity, restructurings, and more.

Topics: Bankruptcy, Auto, Automotive, Venture Capital, Department of Energy, Fisker Karma, Henrik Fisker, A123 Systems

Contact Information

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