Fisker Slashes Prices on Ocean Electric SUV in Effort to Move Inventory
Fisker, the electric vehicle manufacturer, is facing an issue of unsold vehicles and has decided to cut prices on its Ocean electric SUV in an attempt to reduce the backlog. The company announced significant price cuts on the 2023-model-year vehicles in an effort to make the Ocean a more affordable and appealing choice for buyers.
Reduced Prices on Ocean Electric SUV
The price reductions on the Ocean electric SUV are substantial. The U.S.-market MSRP for the 360-mile Ocean Extreme has dropped from $61,499 to $37,499. The lower Ultra grade now starts at $34,999, down from $52,999, and the starting price of the Ocean Sport grade has been reduced from $38,999 to $24,999. These price cuts are aimed at making the Ocean more accessible to a wider range of customers.
Production Pause and Distribution Troubles
Earlier this month, Fisker announced a six-week production pause for the Ocean due to a growing number of undelivered vehicles. The Ocean is assembled by Magna at their factory in Graz, Austria, and the production pause was intended to help address the issue of excess inventory. In addition to production problems, Fisker is also facing distribution difficulties, as it transitions to a dealer-based sales model. Some original dealers have reportedly left, making it challenging for the company to get their vehicles to customers.
Potential EV Partnership and Financial Needs
Fisker recently reported a potential EV partnership with a large automaker, rumored to be Nissan, but the deal has since fallen through. This has left Fisker in a precarious financial position, with the company needing an additional $150 million in funding to continue operating. Despite having plans for future products such as an urban EV, electric pickup, and flagship GT, Fisker’s financial struggles may prevent them from realizing these ambitions without a significant infusion of capital.
Challenges and Opportunities for Fisker
Fisker’s decision to slash prices on the Ocean electric SUV reflects the challenges the company is facing in the EV market. While the price cuts may help address the issue of unsold inventory, Fisker still needs to find long-term solutions to its production, distribution, and financial problems. As the EV market becomes increasingly competitive, Fisker will need to innovate and adapt in order to survive and thrive in the industry. By addressing these challenges head-on and finding ways to strengthen its position in the market, Fisker may be able to carve out a successful future for itself in the electric vehicle industry.