FX.co ★ Fisker Slashes EV Prices To Avoid Potential Bankruptcy

Fisker, an electric vehicle startup, has decreased the prices of certain models to avoid potential insolvency, following the termination of a deal with an undisclosed automaker.

Communication made to various media outlets reveals that the automaker intends to reduce the prices of Ocean Extreme, Ultra, and Sport models by more than 30 percent. The aim is to make these vehicles a highly appealing and affordable choice for potential EV buyers across a wide market. Additionally, through regular software updates delivered over the air, they aim to maintain and improve the vehicles' performance.

The pricing for the 2023 models of the Ocean Extreme has been cut from $61,499 to $37,499, the Ultra from $52,999 to $34,999, and the Sport from $38,999 to $24,999. The company, headquartered in California, mentioned that it's offering some additional discounts worth $7,000 on some Ocean models, which have been incorporated into the new pricing.

This decision to cut prices was made in the wake of the New York Stock Exchange delisting Fisker's shares, stating that the shares were unsuitable for listing due to their unusually low price levels.

Ever since the negotiations for a joint venture to develop electric vehicles and manufacture them in North America fell through on March 22, Fisker found itself considering alternative strategies. These include purchasing back shares, redeeming shares, considering potential asset sales and business sales, looking at court restructurings, and mulling over the potential issuance of equity securities.

Should Fisker end up filing for bankruptcy, it would be the second failure for CEO Henrik Fisker, who previously faced the collapse of Fisker Automotive, which filed for bankruptcy in 2013.