Business
Troubled EV maker Fisker closing Manhattan Beach headquarters
In an effort to stave off bankruptcy, electric-vehicle maker Fisker Inc. is closing its Manhattan Beach headquarters and has secured a $3.5-million lifeline as it continues to explore an acquisition or other strategic alternative.
The troubled company, which had about 300 employees in the 72,000-square-foot offices at the end of March, is moving its remaining workers to an engineering and distribution facility in La Palma in Orange County, said a person familiar with Fisker’s operations who was not authorized to comment.
In all, the company had roughly 1,135 employees as of mid-April, following an announced 15% cut to its workforce.
Fisker has been attempting to avoid bankruptcy since March, when it announced that talks over a strategic alliance with a major automaker had ended, squelching a deal that would have given it $150 million in new financing.
That caused its shares to collapse to pennies, prompting the New York Stock Exchange to delist the stock, which violated another debt agreement the company struck with an investor last year, according to a regulatory filing.
A major automaker, said to be Nissan, was reportedly in talks to invest in Fisker. Nissan was considering making the Fisker Alaska truck at a U.S. plant — a deal that would come with a $400-million investment, Reuters first reported. Fisker did not confirm the reports.
Fisker announced this week that it secured a $3.5 million short-term loan, as it continues to operate and sell its midsize Ocean SUV. The note is due June 24 and has the potential to increase to $7.5 million.
The Ocean, a competitor to Tesla’s Model Y, was released last year to mixed reviews; some praised its build and styling, but the car has been plagued by software glitches.
The National Highway Traffic Safety Administration has four investigations into the vehicle, including one opened this month after complaints that the SUV’s automatic emergency braking system randomly triggered.
Other probes are looking into reports that a door on the Ocean will not open and complaints about a loss of braking performance. The company has said it is working with the regulator.
Fisker said this week that it had added three dealers to its networks in California and New Jersey, which it began building after a plan to sell direct to consumers — like Tesla does — didn’t pan out. It also announced additional price cuts on some Ocean models.
In March, Fisker slashed the price on its entire lineup of 2023 Oceans by more than 30%. The company also said that it had paused production at its contract manufacturing plant in Austria, which produced about 10,200 Oceans last year.
Fisker was founded in 2016 by noted car designer Henrik Fisker, who has said the Ocean was inspired by California. The SUV features a full-length solar roof, an interior composed of “vegan” recycled plastic and a drop-down rear window that can fit a surf board.
Fisker is not the only startup that has been struggling amid a slowdown in the domestic market for electric vehicles and a rise in interest rates.
Rivian Automotive, an Irvine maker of electric trucks, has informed state officials it will lay off more than 120 employees beginning in June. In February, the company announced it was cutting 10% of its workforce. The company’s shares have lost more than half of their value since last year.
Business
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Business
Dream of owning a flying car? This California company is already selling them
A future with flying cars is no longer science fiction — all you need to order your own is about $200,000 and some hope and patience.
The Palo Alto-based company Pivotal has been developing the technology since 2009 and is nearly ready to bring it to market. The company’s founder Marcus Leng was the first to fly in its real-life version of a flying car in 2011.
Leng engineered an ultralight, electric-powered vertical takeoff and landing aircraft known as an eVTOL. Other VTOL aircraft, such as helicopters, had existed for decades, but Leng’s invention was fixed-wing and didn’t rely on gas.
The Canadian engineer dubbed his creation BlackFly and spent years working on it in secret.
The company moved to the Bay Area in 2014 and by 2018 had developed a second version of BlackFly that laid the groundwork for Helix, the aircraft Pivotal now offers for sale.
Pilot Aeddon Chipman readies the Pivotal BlackFly in Watsonville, Calif.
“The company kind of came out of stealth at that point and said, ‘This is what we’re up to,’ ” said Pivotal Chief Executive Ken Karklin, who took over company leadership from Leng in 2022.
Those who are curious — and wealthy — can reserve a Helix today with a $50,000 deposit. The aircraft starts at $190,000 with the option of purchasing a transport trailer for $21,000 and a charger for $1,100.
A customer who makes their reservation today could receive their aircraft in nine to 12 months, Karklin said. It takes less than two weeks to learn how to fly it.
In order to complete Pivotal’s flight certification training, a customer has to pass the FAA knowledge test and complete ground school. Training, which takes place at the company’s Palo Alto headquarters and at the Monterey Bay Academy Airport, teaches customers how to control and maintain the aircraft, as well as how to transport and assemble it.
Pivotal, formerly known as Opener, publicly introduced the BlackFly in July 2018. In October 2023, the company unveiled Helix, calling it the first scalable aircraft of its kind.
The Pivotal Black Fly takes off near Watsonville, Calif.
A handful of California companies are using eVTOL technology to develop what they call air taxis to shuttle people around congested cities. But Pivotal says it offers something different: a single-person aircraft for recreational use and short-haul travel that also has the potential to support emergency response and military operations.
It is uncertain how fast the company and others like it can ramp up production and how communities will react. Not everyone is on board. Darlene Yaplee, president of the Aviation-Impacted Communities Alliance, said there are concerns about having different types of aircraft in limited airspace.
Pivotal has around six early-access customers who already own a version of the BlackFly and are flying it for fun. The aircraft is designed to be accessible and user-friendly, and you don’t need a pilot’s license to operate it.
Tim Lum, a Washington state resident, bought his BlackFly in 2023. He’s since taken it on around 1,200 flights in 100 different locations across the U.S.
The Pivotal BlackFly cruises in the air.
Lum, who isn’t an FAA-certified pilot, said owning a BlackFly is like a dream. He can take off and land anywhere with 100 feet of clearance and permission if on private land. He also uses small, private airports.
The aircraft is stored in Twisp, Wash., but Lum has towed it coast to coast, stopping to fly in states such as Florida, Montana and California. He shares it with family and friends who also trained to get certified by the company.
“Something really happens to the synapses in my brain when I’m flying,” Lum said. “Things get sorted out and things make sense. This has opened up more doors for me and the people that I care about than money can buy.”
Pilot Aeddon Chipman launches the Pivotal BlackFly.
The Helix is classified as a Part 103 ultralight aircraft, the same regulatory class as a hang glider. It’s meant to be flown less than 200 feet high, in unregulated airspace, and weighs about 355 pounds empty.
Karklin said the company has received about a year’s worth of reservations for Helix. He did not specify the number of customers but said it was more than 10.
Karklin has been getting Pivotal ready for a wider market. The company, which has more than 100 full-time employees, has trained just over 50 people to fly its aircraft. Customers and employees have been trained.
Pivotal’s business will operate across three segments, Karklin said, including personal use, public safety and defense.
“You’re going to see business generated by all three,” he said. “We talk about recreation and short hop travel, and sometimes folks can be a little dismissive about that. I think that’s a huge mistake.”
The Pivotal BlackFly in flight.
In 2023, Pivotal leased eight aircraft to an innovation arm of the U.S. Air Force and defense technology firm MTSI. The Air Force conducted nondevelopmental testing and evaluation of the vehicle that informed the latest version of Helix.
Helix will have an electric range of about 30 minutes and a cruise speed of 62 mph, the company said. It takes 75 minutes to charge it using a 240 volt charger.
The noise produced by the aircraft during takeoff and landing is equivalent to a couple of leaf blowers, Karklin said. When flying it is overhead, someone on the ground might not be able to hear it.
Karklin said the simplicity of the aircraft comes with lower cost, lower weight and higher safety. The aircraft, which has only 18 moving parts, is full of redundancy to prevent system failures.
It’s been independently evaluated by the Light Aircraft Manufacturers Assn., and Pivotal’s quality management system has received a certification from SAE International, which sets aviation safety standards.
The company completes flight demonstrations frequently at the Monterey Bay Academy Airport, near the coast in Watsonville.
When Helix flies, it turns heads, Karklin said.
“It’s starting to get very real,” he said. “More people can actually see it in person and touch it and feel it. And then they want to get on.”
Business
Waymo under scrutiny after hitting child near Santa Monica elementary school
A Waymo self-driving taxi recently struck a child near a Santa Monica elementary school during drop-off hours, triggering an investigation into the incident by the National Highway Traffic Safety Administration.
The child sustained minor injuries, Waymo said. After being struck, the child stood up and walked to the sidewalk, where witnesses called 911.
Santa Monica Police said officers responded to the Jan. 23 incident near 24th and Pearl streets, close to Grant Elementary School. After being evaluated by responders from the fire department, the child was released.
The investigation said the child was running across the street toward the school when they were hit. Waymo said the child appeared from behind a large SUV.
“The event occurred when the pedestrian suddenly entered the roadway from behind a tall SUV, moving directly into our vehicle’s path,” Waymo said in a statement. “The Waymo Driver braked hard, reducing speed from approximately 17 mph to under 6 mph before contact was made.”
There were other children, a crossing guard and several double-parked vehicles in the vicinity when the accident occurred, according to NHTSA.
Waymo reported the incident to the NHTSA Office of Defects Investigation and said it would fully cooperate. The Waymo involved was operating on the company’s fifth-generation automated driving system without a safety driver.
The company said the incident demonstrated the safety benefits of Waymo.
“Our peer-reviewed model shows that a fully attentive human driver in this same situation would have made contact with the pedestrian at approximately 14 mph,” the statement said. “This significant reduction in impact speed and severity is a demonstration of the material safety benefit of the Waymo Driver.”
A spokesperson for the city of Santa Monica referred questions to police.
Santa Monica sued Waymo in December after it ordered the company to cease overnight operations of two charging stations for the autonomous vehicles. Waymo in turn sued the city, alleging that city officials were aware the charging facilities would be operating 24 hours a day and maintain a commercial electric vehicle fleet.
The Alphabet-owned company also came under fire late last year for running over and killing KitKat, a beloved neighborhood cat in San Francisco. Weeks later another Waymo hit an unleashed dog in the city.
Video evidence shows that KitKat lingered under the vehicle for several seconds before it pulled away, crushing him. A woman was crouched beside the car, trying to lure KitKat to safety. A human driver easily would have noticed something wasn’t right, critics said.
Waymo has been the subject of several NHTSA investigations and recalls, including a recall of more than 1,200 vehicles last year because of a software defect that led to a series of minor crashes.
Waymo launched its services in Los Angeles in 2024 and covers more than 120 square miles of the county, not including Los Angeles International Airport. The company got its start as the Google Self-Driving Car Project, which began in 2009 and put its first autonomous car on the road in 2015. The project rebranded as Waymo in 2016 under Google’s parent company and launched its driverless ride-hailing service known as Waymo One in 2020.
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