Founder of failing EV firm once worth $8 billion reveals the enormous salary cut he's taken in bid to slash costs

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The laminitis of a failing EV patient erstwhile worthy $8 cardinal has revealed nan tremendous net trim he's taken successful a bid to slash costs.

Henrik Fisker, CEO of nan eponymous car company, has slashed his costs to conscionable $1 to thief screen bankruptcy costs.

His COO wife, Dr Geeta Gupta-Fisker, has besides voluntarily reduced her net arsenic nan institution attempts to waste disconnected assets.

Previously, nan mates earned $62,400 a twelvemonth each, nan minimum guidelines net nether applicable rule astatine that time. They besides received rate bonuses of $710,000, Business Insider reports.

Fisker revenge for bankruptcy past month aft attempts to find a purchaser failed.

Henrik Fisker, CEO of nan eponymous car company, has slashed his costs to conscionable $1 to thief screen nan bankruptcy process

The entrepreneur, who helped creation nan celebrated Tesla Model S, founded nan institution arsenic an affordable replacement successful nan EV market.

The seven-year-old electrical car institution was founded by Fisker, who has been its president and CEO.

Fisker, a designer, is besides known for starring nan improvement of nan BMW Z8 sports car. 

He had eager plans including a flagship SUV EV called nan Ocean which was released successful June 2023 and costs upwards of $38,000.

However, attempts to outsource accumulation quickly deed obstacles and Fisker struggled pinch parts shortages.

At 1 point, nan car shaper had to portion parts from Fisker and his wife's cars to make repairs to nan first batch of Oceans.

The problems extended beyond accumulation however, aft 14 complaints were made to the National Highway Traffic Safety Administration (NHTSA) astir nan vehicle's doors failing to open.

Worryingly, immoderate of nan reports claimed that nan emergency override could not merchandise nan door,' reports.

The NHSTA will behaviour a preliminary evaluation, which will go nan 3rd lawsuit it has unfastened against Fisker.

The embattled institution faced a further group backmost erstwhile celebrated car reviewer Marques Brownlee, who's down nan MKBHD YouTube channel, branded nan Ocean, 'the worst car I've ever reviewed'.

Husband and woman COO Geeta Fisker and CEO Henrik Fisker, left, person some voluntarily reduced their salaries

EV patient Fisker was erstwhile worthy $8 cardinal but now stands astatine a fraction of that value

He complained astir issues pinch nan car's package and claimed Fisker tried to stall providing him a conveyance to reappraisal until it had issued a caller update.

Brownlee ended up borrowing 1 of nan cars from different dealership but was near unimpressed. 

'Do not bargain this type of nan Fisker Ocean,' he urged his 18.6 cardinal subscribers.

In response, Fisker told nan media nan issues flagged had predominantly been recovered successful earlier runs of models and that nan institution is continuously moving to hole and update features.

But Brownlee's video notched up 5 cardinal views and preceded a steep plummet successful Fisker stock. 

Sales of nan Ocean has stalled, pinch Fisker missing its ain income targets. In March, it announced it was lowering nan unit value of its 2023 Ocean Extreme by $24,000.

'We are alert that nan manufacture has entered a turbulent and unpredictable period,' Fisker said successful a connection astatine nan time.

'With that knowing and taking nan lessons learned from 2023, we person put a scheme successful spot to streamline nan institution arsenic we hole for different difficult year.' 

The institution has been besieged by issues astir its EV SUV, nan Ocean, launched successful 2023

Fisker is now attempting to waste disconnected its assets to thief screen bankruptcy costs. Pictured: Fisker unveils nan Fisker Ocean during AutoMobility LA up of nan Los Angeles Auto Show successful Los Angeles, California, US, o Nov.  17, 2021

The institution now hopes to displacement its 3,300 unsold Oceans onto thrust hailing apps for illustration Uber and Lyft for 80 percent beneath marketplace rate.

Plunging stock prices person meant that NYSE, nan world's largest banal exchange, delisted Fisker complete nonaccomplishment to comply pinch norms.

The institution was removed owed to 'abnormally low' value levels, which saw shares traded for nether a dollar.

Over nan past month, nan institution stocks person plummeted 94.9 percent. As of Wednesday morning, nan institution was worthy little than $10 million.

In February, 2021, Fisker shares were trading arsenic precocious arsenic $28, valuing nan institution astatine almost $8 billion.

Delisting intends nan institution now must instantly salary disconnected its debts owed successful 2025 and bargain backmost bonds owed successful 2026, according to a regulatory filing.

Fisker stated successful its filing pinch nan Securities and Exchange Commission (SEC) that it whitethorn not person 'sufficient rate reserves aliases financing sources' to salary disconnected its debts. has contacted Fisker for comment.

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