Electric car startup Fisker slashed prices on its supply of Ocean SUVs by as much as 39% late last week as the company attempts to avoid bankruptcy.
The massive price cuts apply to 2023 models Fisker has in stock but not to recent orders for 2024 versions. The company has stopped accepting orders for new models and halted production for at least six weeks.
The price of the entry-level Ocean Sport has fallen $14,000 from $38,999 to just $24,999. The high-end Extreme model has fallen from $61,499 to $37,499.
The Fisker website still allows shoppers to configure new cars, but the option to order after configuring has disappeared, replaced by buttons to save your configuration or see current inventory.
Likely One of Several Collapses
Starting up a new automaker is one of the most difficult challenges in business because it requires incredibly deep pockets. Companies must be prepared to lose money for years building production capacity before they have a nationwide reputation among shoppers.
They can become very profitable once they turn that first corner. Tesla had its first profitable quarter selling cars in its 18th year in operation, then quickly became the world’s most profitable automaker.
Fisker appears likely to run out of funding long before turning that corner. The company recently announced a $150 million financing commitment, but that sum won’t save it. Talks with a major automaker (reportedly Nissan), which might have bailed Fisker out in exchange for access to some of its technology, collapsed last week.
Many analysts expect a culling of the current crop of EV startups as some fail to find the needed funding.
Would Be the Second Fisker Bankruptcy
Fisker Inc. is the second effort from famed car designer Henrik Fisker – the man responsible for the original BMZ Z8 and the look of the Aston Martin DB9. His first attempt at creating a car company delivered about 2,000 Fisker Karma sedans before filing bankruptcy in 2013.
This time, he planned four products but built one. In addition to the Ocean, Fisker had announced an affordable EV called the Pear, a pickup called the Alaska, and a high-performance convertible, the Ronin.
Tempted? Don’t Do It
The Ocean is a lovely looking vehicle, as you might expect from the designer of some of the world’s most attractive cars.
It’s full of unique ideas, including a solar roof to trickle charge even when the car is not connected to a charger, and a touchscreen that rotates from landscape to portrait orientation.
But I wouldn’t recommend you buy one at any price.
Owners of the original Fisker Karma already face challenges finding qualified repair shops and spare parts.
Owners of the Fisker Ocean will likely have more severe problems. Today’s cars are software-dependent. Many need regular software updates and patches to solve problems and stay functional.
If Fisker goes under, as now seems inevitable, owners will be left with a car full of unsupported software. Already, early Fisker Ocean owners are filling message boards with worries about the collapsing resale value of their cars and potential software bugs that will never be fixed.
Even at 40% off, that’s no bargain.
