Dive Brief:
- Electric vehicle startup Fisker has significantly reduced the manufacturer’s suggested retail price of its 2023 Ocean models by up to 39% to attract buyers as the company runs low on cash, according to a press release Wednesday.
- The automaker cut the Ocean Extreme’s MSRP from $61,499 to $37,499. It also heavily discounted the Ultra and Sport trims, cutting prices from $52,999 to $34,999 and $39,999 to $24,999, respectively.
- The price cuts, which took effect on Friday, make the 2023 Ocean base model the lowest-price EV in the U.S., according to Cars.com.
Dive Insight:
Despite the price reductions, Fisker may struggle to sell its EVs after the company warned last month that it may not survive through 2024.
On March 18, Fisker announced it would stop producing vehicles for six weeks to sell unsold 2023 inventory and raise up to $150 million by selling convertible notes. The automaker said it had 4,700 vehicles in its inventory, most of which were manufactured in 2023. As of March 15, Fisker had produced about 1,000 vehicles and delivered about 1,300 in 2024.
The company was also reportedly in talks with Nissan for an investment and partnership that would serve as a lifeline for the struggling EV startup, but those talks dissolved.
In a regulatory filing last month, Fisker said its cash, cash equivalents and restricted cash fell from $395.9 million at the end of 2023 to $120.9 million as of March 15. Fisker also missed an $8.4 million interest payment on March 15.
Despite its dire financial situation, Fisker is still pursuing dealer partnerships in North America and Europe to sell its vehicles after abandoning its direct-to-consumer sales model earlier this year.
