The EV market is drying up and prices are being slashed

Photo By Rathaphon Nanthapreecha from Pexel

The government is trying to threaten, beg, and bribe Americans into electric vehicles, but Americans are not buying the hype.

And some EV manufacturers are struggling to keep themselves afloat amidst abysmally low customer demand.

Now one California-based EV maker is slashing prices to all-time lows just so they can try and avoid going belly-up.

Fisker is cutting prices big-time

You may not have heard of the brand before now, but Fisker is a California-based electric vehicle startup that is currently facing possible bankruptcy.

After a potential deal with another automaker fell through, the company has started to slash its asking prices just to stay afloat.

For example, the manufacturer’s suggested retail price (MSRP) for its 2023 Ocean electric SUV lineup recently fell by tens of thousands of dollars.

The MSRP for the 2023 Ocean Extreme trim was $61,499, but now it’s $37,499, according to the company.

Fisker’s 2023 Ultra trim is now $34,999, down from an original price of $52,999, and the 2023 Sport will now cost $24,999, down from $38,999.

The company also said some of the vehicles from its Ocean lineup will include up to $7,000 worth of additional options included in the discounted prices.

In a statement, Fisker said it is “strategically positioning the all-electric Ocean SUV to be a more affordable and compelling EV choice, competitively available to EV buyers in the broadest possible market, and constantly improving via frequent Over-the-air (OTA) software updates.”

Despite the price cuts, some industry analysts still think Fisker could eventually file for bankruptcy.

Thomas Hayes, chairman at hedge fund Great Hill Capital, told FOX Business, “It’s sad to see any company go bankrupt, but we expect to see more of them in the EV space. At the end of the day, it is unclear whether people actually want EVs, or they simply want Tesla’s.”

Hayes said there’s a difference because most EVs are a commodity, while Tesla is a brand that evokes a specific lifestyle and ideology.

He added that “in the EV space – over time – there will be Tesla and the major incumbent ICE (internal combustion engine) producing OEMs (original equipment manufacturers) left standing, namely those OEMs who continue to choose to – or are forced by governments – to produce EVs.”

Fisker was delisted from the NYSE

Fisker announced its price cuts just a few days after the New York Stock Exchange announced it would delist Fisker’s shares.

The NYSE said the “stock is no longer suitable for listing based on abnormally low-price levels.”

The unnamed automaker that was in talks to make a deal with Fisker terminated negotiations on March 22, according to a filing with the Securities and Exchange Commission (SEC).

Meanwhile, Fisker has been forced to come up with some strategic alternatives, one of which might include serious restructuring and capital markets transactions.

If the company does file for bankruptcy, it would be the second failed auto startup from CEO Henrik Fisker because Fisker Automotive filed for bankruptcy in 2013.

Informed American will keep you up-to-date on any developments to this ongoing story.