Electric vehicle startup Fisker is making aggressive price cuts across its 2023 Ocean SUV lineup as it grapples with an increasingly dire financial situation that may result in bankruptcy.
The new Ocean price reductions, scheduled to go into effect Friday, March 29, are drastic and vary based on trim level. The cheapest entry, the Sport, will now cost $27,734, down $14,000 from $41,437, while the Ultra, once $55,437, will see its price decline by $18,000 to $37,437. The most expensive trim, the Extreme, will receive a massive $24,000 price cut, dropping its price from $63,937 to $39,937. Fisker has yet to confirm if it will discount its 2024 SUV lineup as well.
The news arrives just weeks after the automaker warned investors of an impending financial collapse following a series of challenges that created manufacturing and retailing delays throughout 2023. In its annual earnings report, Fisker reported $325 million in cash reserves at the start of 2024, down significantly from $736 million in 2023. However, its full-year losses from last year totaled $761 million, leaving the brand with only months to balance its budget. At the time, the company said it was negotiating with potential business partners, including Nissan, to receive additional funds and production assistance, both of which it said would be necessary to avoid bankruptcy.
Unfortunately, while the new price cuts may help attract consumers, the company may still be unable to deliver its products. One of its primary obstacles is its insufficient sales network. Unable to scale a direct-to-consumer model, it turned to dealers in an effort to expand its reach. By February, only 13 retailers had agreed to join its dealership partner program.
