Photo: Fisker
In a desperate move to clear the inventory, Fisker cut the Ocean prices by up to 40%. However, the startup is experiencing the equivalent of a bank run, as everyone wants to distance itself from the ailing startup. The latest to do so was Tesla, which announced suspending all Fisker Ocean trade-ins effective immediately.
Fisker is probably living its last moments, with bankruptcy all but guaranteed unless some earth-shattering miracle happens. The EV startup has failed to sell half of the vehicles it produced in 2023 and is now desperately grasping for a lifeline. However, in adverse market conditions and with no real assets to sell, Fisker is going down. The worst part is that the real losers will not be Henry Fisker or the investors in the company but people who trusted them and bought an Ocean SUV.
After talks for a potential partnership fell apart earlier this week, Fisker's share price crashed, prompting the New York Stock Exchange (NYSE) to initiate the delisting procedure. Fisker missed an interest payment on its 2026 bonds and will likely default on 2025 bonds, getting closer to bankruptcy with each failed step. Right now, the company is desperately trying to get more cash, even if this means screwing its customers in the process.
On Monday, Fisker announced a massive price cut for the Ocean SUV, making it the cheapest electric vehicle in the US. At $25,000 for the Fisker Ocean Sport, this seems more attractive than the Chevrolet Bolt ($26,500 if you can still find one) or the Nissan Leaf ($28,140). But just because this is a lot of car you buy with this money, it doesn't mean you should.
If you read the Fisker subreddit, you will see that people are still considering buying the Ocean despite the problems that might arise if Fisker goes bust. However, these people should understand that not only servicing their vehicles or finding parts for them will become impossible. All the connected features that rely on a cloud platform will likely cease to function, turning the Fisker Ocean into an expensive chunk of metal. Or, as some put it, a $65,000 lesson.
Those who already own a Fisker Ocean will face the same disaster. Besides all the above problems, the resale value of their EV is plummeting. It has already taken a hit after Fisker cut the prices on Monday, but things will go really crazy in the coming months. One Fisker owner trying to trade in his SUV for a Hyundai Ioniq 5 was quoted $24,000 for their Ocean Extreme (worth $62,600 when new). However, the Ocean SUV has already lost all value for other traders.
Tesla has already notified its employees to stop accepting Fisker Ocean trade-ins. In a message shared on Reddit, Tesla says the measure was temporary and was made "due to significant market uncertainty" on Fisker Ocean vehicles. Although the note suggests that the decision could be revoked later, as the EV maker evaluates the situation, don't expect to get much value when trading in or selling a Fisker Ocean.
Besides those trying to get rid of their Fisker EVs, there are also reservation holders trying to cancel their reservations in the hope that they will get their $250 deposits back. Some even got the confirmation that the amount, minus a $25 processing fee, had been sent to their bank accounts. However, since Fisker has no money to pay its debts, it's highly unlikely that many will get their money back. This is the equivalent of a bank run, where people rush to take their money out, only to cause everybody else to lose all their money.
After talks for a potential partnership fell apart earlier this week, Fisker's share price crashed, prompting the New York Stock Exchange (NYSE) to initiate the delisting procedure. Fisker missed an interest payment on its 2026 bonds and will likely default on 2025 bonds, getting closer to bankruptcy with each failed step. Right now, the company is desperately trying to get more cash, even if this means screwing its customers in the process.
On Monday, Fisker announced a massive price cut for the Ocean SUV, making it the cheapest electric vehicle in the US. At $25,000 for the Fisker Ocean Sport, this seems more attractive than the Chevrolet Bolt ($26,500 if you can still find one) or the Nissan Leaf ($28,140). But just because this is a lot of car you buy with this money, it doesn't mean you should.
If you read the Fisker subreddit, you will see that people are still considering buying the Ocean despite the problems that might arise if Fisker goes bust. However, these people should understand that not only servicing their vehicles or finding parts for them will become impossible. All the connected features that rely on a cloud platform will likely cease to function, turning the Fisker Ocean into an expensive chunk of metal. Or, as some put it, a $65,000 lesson.
Those who already own a Fisker Ocean will face the same disaster. Besides all the above problems, the resale value of their EV is plummeting. It has already taken a hit after Fisker cut the prices on Monday, but things will go really crazy in the coming months. One Fisker owner trying to trade in his SUV for a Hyundai Ioniq 5 was quoted $24,000 for their Ocean Extreme (worth $62,600 when new). However, the Ocean SUV has already lost all value for other traders.
Tesla has already notified its employees to stop accepting Fisker Ocean trade-ins. In a message shared on Reddit, Tesla says the measure was temporary and was made "due to significant market uncertainty" on Fisker Ocean vehicles. Although the note suggests that the decision could be revoked later, as the EV maker evaluates the situation, don't expect to get much value when trading in or selling a Fisker Ocean.
Besides those trying to get rid of their Fisker EVs, there are also reservation holders trying to cancel their reservations in the hope that they will get their $250 deposits back. Some even got the confirmation that the amount, minus a $25 processing fee, had been sent to their bank accounts. However, since Fisker has no money to pay its debts, it's highly unlikely that many will get their money back. This is the equivalent of a bank run, where people rush to take their money out, only to cause everybody else to lose all their money.
What I can say is that the refund process through Stripe was lightning fast; Nothing like the hoops I had to jump though to get prior GM reservations cancelled. pic.twitter.com/97xSjQJ7Fo
— The Kilowatts ⚡️ (@klwtts) March 27, 2024
Google News