Fisker, a California-based electric SUV company, is facing the possibility of bankruptcy as its stock hovers at just over 2 cents per share, far below its 2021 peak. Despite production halting, the company is offering discounts on its Ocean SUV with prices cut by up to 39%. The top-of-the-line Ocean Extreme model has been reduced from $62,500 to $37,500, while the Sport trim level is now priced at $25,000. Fisker has framed these price cuts as a strategic shift rather than a fire sale to make its electric SUVs more competitive in the market.
The Fisker Ocean has not received positive reviews, with American YouTuber Marques Brownlee calling it the worst car he has ever reviewed, causing the company’s stock price to plummet. Consumer Reports also criticized the Ocean’s ride quality and software, although they did praise its cargo space, rear seat legroom, and large glass moonroof. Fisker has attributed some negative responses to early software problems and plans to update and improve the software through over-the-air updates to address these issues without the need for dealership visits.
Fisker’s service plans remain unclear, especially in the event of the company going out of business. Originally planning to sell and service vehicles themselves, Fisker has transitioned to recruiting independent dealers to sell their vehicles, similar to more established automakers. However, by the end of 2023, Fisker had only signed up 12 dealers in the United States and Europe. Additionally, the company has reported concerns about running out of cash to continue operations and relies on contract manufacturer Magna Steyr in Austria to produce their SUVs. In 2021, Magna produced over 10,193 Fisker SUVs, but less than half were delivered to customers within the year.
Despite the challenges facing Fisker, the company is strategically pricing its electric SUVs to be more accessible to a broader market. They aim to make the Ocean a compelling choice for EV buyers with competitive pricing. Fisker’s founder, Danish auto designer Henrik Fisker, established the company in 2016 with the intention of creating innovative electric vehicles. While the Ocean has faced criticism, Fisker remains committed to improving the software and addressing customer concerns through updates. However, questions remain about the company’s future, especially regarding servicing and operations if they are unable to overcome financial challenges and potential bankruptcy.
