Troubled EV maker Fisker to cut some car prices by more than 30% to boost demand

By Tomi Kilgore

The electric-vehicle company's stock, which has been delisted from the NYSE, bounced slightly Thursday but has tanked 82% this week

Any remaining investors in Fisker Inc.'s stock got a slight reprieve Thursday from the troubled electric-vehicle maker's selloff, after the company announced large price cuts in an attempt to boost demand for its cars.

"Fisker 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," the company (FSRN) said in a statement.

The price of the 2023 Fisker Ocean Ultra was cut by 34%, from $52,999 to $34,999, while the price of the 2023 Sport was dropped by 36%, from $38,999 to $24,999. Although they are 2023 models, the EVs will have the latest 2024 Ocean OS software versions installed.

The price cuts go into effect on March 29.

Fisker shares rose 11.7% in morning trading, to 2.29 cents. They have plummeted 81.7% this week, which puts them on track for their worst weekly performance since the stock went public in October 2018.

The company's stock currently trades over the counter, after being delisted by the New York Stock Exchange earlier this week because it was trading at an "abnormally low" price. The move caused the stock to plunge even further, as Fisker indicated that a delisting would trigger an event of default on some of its convertible debt.

That followed Fisker's announcement that discussions with a large carmaker about a potential deal had been terminated, increasing concerns about a potential bankruptcy.

Fisker said Thursday that it continues to pursue partnerships with auto dealers to sell its EVs, after announcing in January that it was abandoning its direct-sales model in favor of a dealer-sales model.

-Tomi Kilgore

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03-28-24 1120ET

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