The struggling California-based electric vehicle startup, Fisker, is facing a critical situation as it seeks permission from the bankruptcy court to sell its remaining electric vehicles at a steep discount of approximately $14,000, which amounts to an 80% reduction from the original price of its flagship models. This bold move comes as the company grapples with financial difficulties and aims to attract buyers to revive its fortunes.
The Ocean SUVs, initially priced between $39,000 and $70,000 when they first hit the market in 2023, underwent a significant price cut in March in a bid to generate much-needed revenue. The Ocean Extreme model, for instance, saw its price slashed from $61,500 to $37,500. Fisker had issued warnings to investors about the possibility of running out of funds, leading to layoffs and a halt in production of new vehicles.
Following a bankruptcy filing in June, Fisker is now seeking approval from the Delaware Bankruptcy Court to sell its remaining 3,321 electric vehicles to American Lease, a car leasing company, for a total of just over $46 million, averaging around $14,000 per vehicle. This move reflects the company’s urgent need to liquidate assets and stabilize its financial position.
While the electric vehicle market is becoming increasingly competitive, with many companies struggling to thrive, Fisker’s challenges have been exacerbated by internal issues. The Ocean SUVs have been plagued by over 100 complaints lodged with U.S. regulators, citing sudden power failures and instances of the front hood opening unexpectedly at high speeds.
Key Figures:
- $2.9 billion: Fisker’s valuation when it went public in 2021.
- 98.7%: The staggering drop in Fisker’s stock price from its IPO to March, leading to its delisting from the New York Stock Exchange.
- $1 billion: The amount Fisker owes to its unsecured creditors, as reported by TechCrunch.
- 1,300: The number of vehicles Fisker managed to deliver in 2024, according to Reuters.
Fisker’s drastic discount offer on its remaining electric vehicles underscores the company’s desperate bid to stay afloat amid financial turmoil and internal challenges. The outcome of this gamble remains uncertain, as Fisker navigates a turbulent landscape in the competitive electric vehicle industry.
