💀 CASE STUDY · STARTUP
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Why Did Fisker Automotive Fail?

The Beautiful Car That Caught Fire (and Drowned)

2013YEAR
☠️ STARTUPCAUSE
💸 $1.4B ($192M US govt loans)THE BURN

📜 What Happened

Henrik Fisker designed the gorgeous Karma hybrid — and outsourced its soul: battery packs from troubled A123 Systems that recalled and bankrupted mid-production, assembly in Finland, software full of gremlins. Karmas caught fire in garages; Consumer Reports' test car DIED on the test track; and 338 brand-new Karmas drowned in a New Jersey port during Hurricane Sandy — the perfect metaphor. Fisker burned $1.4B without ever controlling its own supply chain.

☠️ The Fatal Mistake

Bet the company on a single fragile battery supplier while spending on design and launch parties — beauty outsourced to a supply chain nobody had secured.

🧠 The Lesson (Free for You)

You can outsource production, never dependency: single-source suppliers of your critical component ARE your company. Audit the chain before the champagne.

📕 The Antidote Book

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