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California-based electric vehicle startup Fisker has cut prices on some of its vehicles as it seeks to avoid bankruptcy after a potential deal with another automaker fell through.
The manufacturer's suggested retail price for the 2023 Ocean electric SUV range in the US, equipped with Fisker's 2024 Ocean OS version 2.0 software, has dropped by tens of thousands of dollars.
Fisker has lowered the MSRP price of the 2023 Ocean Extreme model from $61,499 to $37,499, the company said Wednesday. The 2023 Ultra 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 Fisker Ocean, the US automaker's all-electric SUV, will be on display at Mobile World Congress on March 3, 2022 in Barcelona, Spain. (Joan Cross/Noor Photo via/Getty Images)
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The company said some of its Ocean vehicles have up to $7,000 worth of additional options included in the discounted prices, which will take effect Friday.
Fisker said in a statement that it “strategically positions the all-electric Ocean SUV to be a more compelling and affordable EV option, competitively available to EV buyers in the broadest possible market, and continually improved via over-the-air (OTA) software updates.”
However, industry analysts believe that the company may fall victim to bankruptcy.
“It's sad to see any company go bankrupt, but we expect to see more of them in the electric vehicle space,” Thomas Hayes, head of hedge fund Great Hill Capital, told FOX Business. “At the end of the day, it's not clear whether people actually want electric cars, or whether they simply want Teslas.” There's a difference because one is a commodity and the other — Tesla — is a brand, a lifestyle and an ideology, Hayes said.
“However, in the electric vehicle space – over time – there will be Tesla and the current flagship company ICE [internal combustion engine] OEM production [original equipment manufacturers] “It has remained the same, namely OEMs who continue to choose – or are forced by governments – to produce electric vehicles,” he added, such as General Motors.
Electric car maker Fisker is showing off its Ocean model at the Mobile World Conference trade show shortly before the car's launch. (Andre Sokolow/Image Alliance via/Getty Images)
The news came just days after the New York Stock Exchange announced it would delist Fisker shares, saying “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 for a deal with Fisker ended negotiations on March 22.
Since then, Fisker has had to evaluate strategic alternatives, which may include on- and off-court restructurings and capital markets transactions.
If Fisker files for bankruptcy, it will be the second automation operation that CEO Henrik Fisker has failed to do. Fisker Automotive declared bankruptcy in 2013.
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