One of many
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up in smoke
EV maker Fisker slashes prices in desperate attempt to avoid bankruptcy. It won’t work.
Fisker lowered the MSRP for the 2023 Ocean Extreme trim from $61,499 to $37,499, the company said Wednesday. The 2023 Ultra trim will be priced at $34,999, down from $52,999, and the 2023 Sport will be priced at $24,999, down from $38,999, according to the automaker.
The company said some of its Ocean vehicles have as much as $7,000 worth of additional options that are included in the discounted prices, which will take effect on Friday.
Fisker said in a statement that 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."
Still, industry analysts believe the company could fall victim to bankruptcy.
"It's sad to see any company go bankrupt, but we expect to see more of them in the EV space," Thomas Hayes, chairman at hedge fund Great Hill Capital, told FOX Business. "At the end of the day, it is unclear whether people actually want EVs, or they simply want Teslas." Hayes said there is a difference because one is a commodity and one — Tesla — is a brand, lifestyle and ideology.
"That said, 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," such as General Motors, he added.
The company was already hemorrhaging cash — a blood bath, you might say — with each vehicle it sold, and no amount of Biden Bucks can keep it going, and especially when they’re cutting the price by 40% and adding $7,000 of “extras”. I’ve seen a few pickups on the road from another failing EV manufacturer, Rivian, and I always wondered who would buy a vehicle from a manufacturer that won’t be around in two years? Same question for would-be Fisker customers.
Bonus material: For a hearty chuckle, perhaps even a guffaw, take a look at this article from a year ago published by something called “Seeking Alpha” - (I assume) there’s smart money on Wall Street, but you wouldn’t know it from the “experts” in the media and on the web.
