Fisker Slashes Price Of Its Only Model By 39% In Last-Ditch Bid To Stay Solvent

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by Tyler Durden
Thursday, Mar 28, 2024 - 01:35 PM

Electric carmaker Fisker is doing everything it can to try and not wind up roadkill on the EV highway amidst industry-wide price cutting and worldwide saturation in competition. 

This week Fisker, which is rumored to be on the verge of considering bankruptcy and has seen its stock trade to pennies and be moved to the pink sheets, reduced the price of its only vehicle, the Ocean sport utility vehicle, by a stunning 39%, according to Bloomberg

The discount applies only to the top end "Extreme" model of the Ocean, which, post-discount, is priced at $37,499. The price cut marks a $24,000 discount to the model's original MSRP. 

The company told Bloomberg it was positioning the vehicle as “a more affordable and compelling EV choice.” Fisker is resorting to significant markdowns in an effort to navigate through liquidity difficulties, the report said.

Earlier in the month, the company halted production and issued a warning that bankruptcy might be on the horizon if it fails to manage its debt obligations.

We can't say we are surprised, as we have noted that the EV industry is seeing increased competition after last year's price cuts across the world, led by Tesla, to try and capture demand. 

Just days ago we wrote that Nissan was the latest to try and slash costs by 30% just to remain competitive in EVs. Similarly, we have noted that auto companies are slashing investment in EVs, as is the case with American auto manufacturers like Ford and GM. We wrote last month that Joe Biden's vision for EVs across America is in "full collapse". 

As we wrote then: "...the higher costs are driving automakers away from EVs. And as battery material requirements are set to double by 2027, fulfilling these mandates will be increasingly difficult, putting Biden's ambitious EV strategy at risk."

Thinktanks like Brownstone have simply noted that when it comes to EVs, "the great reset didn't work". 

Jeffrey Tucker wrote last month: "In short, the illusions of these horrible policies have come crashing down. It was born of liberty-wrecking policies under the cover of virus control. Every special interest seized the day, including a new generation of industrialists seeking to displace the old ones by force."

Recall, a report from Consumer Reports last year found that electric vehicles have almost 80% more problems and are "generally less reliable" than conventional internal combustion engine cars.