KEY TAKEAWAYS
- Fisker is slashing suggested prices by at least 30% on some of its 2023 models as the electric-vehicle (EV) maker struggles to raise cash.
- It currently has about 4,700 vehicles in its inventory, which it estimates is worth over $200 million.
- Fisker, which has been delisted from the New York Stock Exchange (NYSE), is in a rush to raise cash to stave off a bankruptcy.
Fisker, which has been delisted from the New York Stock Exchange (NYSE), is slashing the suggested prices for some of its 2023 models as the struggling electric-vehicle (EV) maker rushes to raise cash.
It is cutting the price of its 2023 Ocean Extreme trim by 39% to $37,499 from $61,499, and also reducing the Manufacturer’s Suggested Retail Price (MSRP) of its Ultra and Sport trims by more than 30%. Trading was halted on Monday after it said negotiations with an unidentified “large automaker” had ended, adding to concerns that the company could be forced into bankruptcy.
Fisker said in its statement Wednesday that it “is strategically positioning Ocean to be a more affordable and compelling EV choice, competitively available to EV buyers.”
Fisker’s troubles come at a time when many EV producers are struggling to compete against cheaper Chinese EV makers like BYD (BYDDY), Nio (NIO), and XPeng (XPEV). Demand growth has also slowed, leading Tesla (TSLA) to reportedly slow production at its Shanghai facility, while Ford (F) is scaling back its electric F-150 Lightning truck, and Rivian (RIVN) is halting construction of a $5 billion plant in Georgia.
Fisker, meanwhile, paused production for six weeks earlier this month. Chief Executive Officer (CEO) Henrik Fisker said in its fourth-quarter earnings report Feb. 29 that the company had struggled to deliver its Ocean SUV to customers as quickly as it had projected because it “encountered unexpected headwinds in our efforts to establish a direct-to-consumer sales model in both North America and Europe at the same time.”
The company said that it had about 4,700 vehicles in its inventory as of March 15 that it estimates is worth more $200 million.