EV startup Fisker slashes prices of Ocean SUV amid debt troubles

By Thomson Reuters Mar 27, 2024 | 6:19 PM

(Reuters) – Electric-vehicle startup Fisker said on Wednesday it was cutting the prices of its electric Ocean SUV, signaling an attempt by the cash-strapped firm to drum up demand and ease concerns regarding its uncertain future.

The company said it will slash the price tag of the top-end version of the vehicle, called “Extreme”, by around 39% or $24,000 to $37,499.

Fisker said the other variants of the Ocean SUV will be much cheaper in order to position the company as “a more affordable and compelling EV choice.”

The news of the price cuts comes a few days after Fisker’s talks with a large automaker about a deal collapsed, sending the company’s shares plunging and prompting the New York Stock Exchange to delist the stock.

The price cuts signal an attempt by Fisker to raise more funds to meet its required debt obligations as the company faces a potential default.

The termination of talks with the unnamed automaker has led Fisker to explore strategic options including in- or out-of-court restructurings and capital markets transactions, the startup said earlier.

The Fisker Ocean competes with Tesla’s Model Y SUV, and a growing crowd of mid-size electric SUVs such as the Ford Mustang Mach-E.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Devika Syamnath)