The waves are rough for beleaguered EV manufacturer Fisker, as news emerges that over 40,000 customers have washed away their reservations for its vehicles. The company finds itself adrift in financial turmoil and on the brink of potential bankruptcy.
Setting Sail: Reports indicate that over 40,000 reservations for the Fisker Ocean, the prized electric vehicle in the company’s fleet, have been jettisoned, based on internal figures acquired by Business Insider. This figure represents a substantial chunk of the 70,000 reservations that have coursed in since pre-orders opened in November 2019.
Each day, the tide carries away 70 to 80 reservations, according to reports. These cancellations swell the company’s costs, with each reservation costing $250, mostly refundable except for a $25 handling fee. The total for these 40,000 cancellations could surge to around $9 million.
Additional cancellations, not fully reimbursable, also loom in the thousands, further adding to Fisker’s tempest.
A Storm Brewing: Fisker recently announced substantial reductions in prices for different variants of its 2023 model Ocean SUV. The Extreme trim now floats $24,000 lower at $37,499, the Ultra trim ebbs $18,000 lower at $34,999, and the Sport trim drifts down $14,000 to $24,999.
These price cuts come after Fisker was cast adrift from the New York Stock Exchange due to plummeting shares. Conversations about potential investments with a key automaker have also capsized, leaving Fisker’s financial horizon shrouded. Looming concerns about the company’s ability to sail into profitable waters have been a cause for worry.
Fisker’s treasure chest has dwindled from $736.5 million in late 2022 to $325.5 million by December 2023. A report showed a net loss of $463.6 million and revenue of $200.1 million for the fourth quarter.
Even with over 10,200 Ocean SUVs crafted in 2023, Fisker only managed to steer 4,929 vehicles to their owners. The company now finds itself anchored with an inventory of around 4,700 vehicles, a mix of leftover 2023 models and freshly built 2024 editions. To navigate the choppy waters of inventory and finance hurdles, Fisker hoisted a six-week production timeout earlier this month.
For more of Benzinga’s Future Of Mobility coverage, set your course by following this link.
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Disclaimer: This content was partly crafted with the assistance of Benzinga Neuro and was reviewed and released by Benzinga editors.
Photo by betto rodrigues on Shutterstock
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