Electric vehicle startup Fisker said Wednesday it is cutting prices on its electric Ocean SUV, signaling an effort by the cash-strapped company to boost demand and ease concerns about its uncertain future.
The company said it will drop the price tag of the top-end version of the vehicle, called “Extreme,” by about 39%, or $24,000, to $37,499.
Fisker said the other variants of the Ocean SUV will be much cheaper to position the company as “a more affordable and compelling EV choice.”
News of the price cuts comes a few days after Fisker’s talks with a major automaker on a deal collapsed, causing the company’s shares to plummet and the New York Stock Exchange to take the stock private.
The price cuts indicate an attempt by Fisker to raise more money to meet required debt obligations as the company faces possible 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 previously said.
The Fisker Ocean competes with Tesla’s Model Y SUV and a growing number of midsize electric SUVs like the Ford Mustang Mach-E. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Devika Syamnath)
Tags: startup Fisker cuts prices Ocean SUV debt issues March
