EV maker slashes prices as it tries to avoid bankruptcy
California-based electric vehicle startup Fisker slashed the prices of some of its vehicles as it fights to avoid bankruptcy after a potential deal with another automaker fell through.
The manufacturer's suggested retail price for the 2023 Ocean electric SUV lineup in the U.S., which is equipped with Fisker’s 2024 Ocean OS software version 2.0, fell by tens of thousands of dollars.
Fisker lowered the MSRP for the 2023 Ocean Extreme trim from $61,499 to $37,499, the company said Wednesday. The 2023 Ultra trim will be priced at $34,999, down from $52,999, and the 2023 Sport will be priced at $24,999, down from $38,999, according to the automaker.
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The company said some of its Ocean vehicles have as much as $7,000 worth of additional options that are included in the discounted prices, which will take effect on Friday.
Fisker said in a statement that it "is strategically positioning the all-electric Ocean SUV to be a more affordable and compelling EV choice, competitively available to EV buyers in the broadest possible market, and constantly improving via frequent Over-the-air (OTA) software updates."
Still, industry analysts believe the company could fall victim to bankruptcy.
"It's sad to see any company go bankrupt, but we expect to see more of them in the EV space," Thomas Hayes, chairman at hedge fund Great Hill Capital, told FOX Business. "At the end of the day, it is unclear whether people actually want EVs, or they simply want Teslas." Hayes said there is a difference because one is a commodity and one – Tesla – is a brand, lifestyle and ideology.
"That said, in the EV space – over time – there will be Tesla and the major incumbent ICE [internal combustion engine] producing OEMs [original equipment manufacturers] left standing, namely those OEMs who continue to choose to – or are forced by governments – to produce EVs," such as General Motors, he added.
The news came just days after the New York Stock Exchange announced that it would delist Fisker's shares, saying that the "stock is no longer suitable for listing based on abnormally low price levels."
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According to a filing with the Securities and Exchange Commission (SEC), the unnamed automaker that had been in talks to make a deal with Fisker had terminated negotiations on March 22.
Since then, Fisker has been forced to evaluate strategic alternatives, which may include in or out of court restructurings and capital markets transactions.
If Fisker files for bankruptcy, it would be the second auto startup from CEO Henrik Fisker to fail. Fisker Automotive filed for bankruptcy in 2013.