Fisker sharply cuts Ocean’s prices as survival looks increasingly unlikely

Max McDee, 27 March 2024

Fisker, the embattled Californian EV startup, is entering what might be the final chapter in its turbulent history. Facing mounting debt, production halts, and threats of bankruptcy, the company announced unprecedented price cuts across its entire Ocean SUV lineup.

In a bid to move inventory and address its immediate cash crisis, Fisker announced it will slash prices on its 2023 Ocean models by up to $24,000. This aggressive move highlights the company's dire straits, coming on the heels of failed takeover talks with Nissan and dwindling cash reserves.

Fisker cuts Ocean’s prices in desperate battle to survive

Fisker's sole model, the Ocean SUV, originally launched in 2023 with three trim levels: Sport, Ultra, and Extreme. The Ocean Sport now starts at $24,999 (down from $38,999), the Ultra at $34,999 (down from $52,999), and the top-tier Extreme at $37,499 (down from $61,499). These price cuts represent discounts ranging from 34% to 39%.

Fisker claims that buyers can enjoy an additional $7,000 worth of options on select 2023 Oceans, including premium paint and wheels, making the deals even sweeter.

The Ocean's debut was marred by production delays, quality issues, and a recent NHTSA investigation into possible unintended acceleration – a combination that eroded consumer confidence. These challenges, coupled with Fisker's precarious financial situation, likely kept buyers at bay despite the Ocean's innovative features and competitive pricing.

Fisker cuts Ocean’s prices in desperate battle to survive

March 2024 has been one heck of a month for Fisker - the company laid off 15% of its workforce, paused Ocean production, and missed a debt payment. Its shares were subsequently delisted from the New York Stock Exchange, reflecting the company's dire prospects.

Analysts see this fire sale as a sign of desperation. The price cuts might temporarily clear inventory, but they further erode profit margins and could hurt the brand's resale value in the long term. Moreover, offering substantial discounts on 2023 models could discourage buyers from waiting for the potentially improved 2024 or 2025 model years. But then again that doesn't really matter if they never happen, right?



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