FOUNDER OF EV FIRM ONCE WORTH $8 BILLION REVEALS ENORMOUS SALARY CUT
The founder of a failing EV firm once worth $8 billion has revealed the enormous salary cut he's taken in a bid to slash costs.
Henrik Fisker, CEO of the eponymous car company, has slashed his wage to just $1 to help cover bankruptcy costs.
His COO wife, Dr Geeta Gupta-Fisker, has also voluntarily reduced her salary as the company attempts to sell off assets.
Previously, the couple earned $62,400 a year each, the minimum base salary under applicable law at that time. They also received cash bonuses of $710,000, Business Insider reports.
Fisker filed for bankruptcy last month after attempts to find a buyer failed.
The entrepreneur, who helped design the popular Tesla Model S, founded the company as an affordable alternative in the EV market.
The seven-year-old electric car company was founded by Fisker, who has been its chairman and CEO.
Fisker, a designer, is also known for leading the development of the BMW Z8 sports car.
He had ambitious plans including a flagship SUV EV called the Ocean which was released in June 2023 and cost upwards of $38,000.
However, attempts to outsource production quickly hit obstacles and Fisker struggled with parts shortages.
At one point, the auto maker had to strip parts from Fisker and his wife's cars to make repairs to the first batch of Oceans.
The problems extended beyond production however, after 14 complaints were made to the National Highway Traffic Safety Administration (NHTSA) about the vehicle's doors failing to open.
Worryingly, some of the reports claimed that the emergency override could not release the door,' Securities.io reports.
The NHSTA will conduct a preliminary evaluation, which will become the third case it has open against Fisker.
The embattled company faced a further set back when popular auto reviewer Marques Brownlee, who's behind the MKBHD YouTube channel, branded the Ocean, 'the worst car I've ever reviewed'.
He complained about issues with the car's software and claimed Fisker tried to stall providing him a vehicle to review until it had issued a new update.
Brownlee ended up borrowing one of the cars from another dealership but was left unimpressed.
'Do not buy this version of the Fisker Ocean,' he urged his 18.6 million subscribers.
In response, Fisker told the media the issues flagged had predominantly been found in earlier runs of models and that the company is continuously working to fix and update features.
But Brownlee's video notched up five million views and preceded a steep plummet in Fisker stock.
Sales of the Ocean has stalled, with Fisker missing its own sales targets. In March, it announced it was lowering the retail price of its 2023 Ocean Extreme by $24,000.
'We are aware that the industry has entered a turbulent and unpredictable period,' Fisker said in a statement at the time.
'With that understanding and taking the lessons learned from 2023, we have put a plan in place to streamline the company as we prepare for another difficult year.'
The company now hopes to shift its 3,300 unsold Oceans onto ride hailing apps like Uber and Lyft for 80 percent below market rate.
Plunging share prices have meant that NYSE, the world's largest stock exchange, delisted Fisker over failure to comply with norms.
The company was removed due to 'abnormally low' price levels, which saw shares traded for under a dollar.
Over the past month, the company stocks have plummeted 94.9 percent. As of Wednesday morning, the company was worth less than $10 million.
In February, 2021, Fisker shares were trading as high as $28, valuing the company at almost $8 billion.
Delisting means the company now must immediately pay off its debts due in 2025 and buy back bonds due in 2026, according to a regulatory filing.
Fisker stated in its filing with the Securities and Exchange Commission (SEC) that it may not have 'sufficient cash reserves or financing sources' to pay off its debts.
DailyMail.com has contacted Fisker for comment.
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