Fisker, a California-based electric SUV company, is facing the possibility of bankruptcy and their stock is currently trading at just over 2 cents a share. Despite production halting, the company is still offering their SUV, the Ocean, at discounted prices of up to 39%. The top-of-the-line Ocean Extreme has been reduced from $62,500 to $37,500 and the Sport trim level from $39,000 to $25,000. However, the Ocean has received critical reviews, with some calling it the worst car they have ever reviewed.
In response to the critical reviews, Fisker announced the price cuts as a strategic move to make the Ocean a more affordable electric vehicle option for a broader market. The company plans to continue updating and improving the software of the Ocean through over the air updates without the need for the SUVs to be taken to a dealer or service center. Despite the negative feedback, Consumer Reports did note positive aspects of the Ocean such as its cargo space, rear seat legroom, and large glass moonroof.
Fisker, founded in 2016 by Danish auto designer Henrik Fisker, originally planned to sell and service vehicles themselves like Tesla and Rivian. However, they have shifted to recruiting independent dealers to sell the vehicles. By the end of 2023, Fisker had only signed up 12 dealers in the United States and Europe. There are concerns about how the vehicles will be serviced in the event the company goes out of business, as Fisker has not provided details on this matter.
The company relies on contract manufacturing to produce their SUVs, with Magna Steyr in Austria being the manufacturer. Last year, Magna produced over 10,193 Fisker SUVs, but less than half of those were delivered to customers within the calendar year. This has contributed to Fisker’s financial problems, with reports in early March indicating that they could run out of cash to continue operations. The uncertainty surrounding Fisker’s future has led to a decrease in stock price and concerns about the viability of the company in the long term.
