EV Maker Forced To Slash Prices To Avoid Bankruptcy

A shocking development has befallen Fisker Inc.

After a partnership with another carmaker fell through, Fisker, a California company, reduced the pricing of several of its cars in an effort to avoid bankruptcy.

Despite its best efforts, the ambitious electric car company unexpectedly canceled more than 40,000 reservations for its Ocean model.

There are serious worries about Fisker’s financial health, even if the company has aggressively lowered prices by up to $25,000 to make the Ocean more enticing to buyers. Due to Tesla’s reluctance to take Fisker car trade-ins, the firm is already struggling with a severe lack of capital.

In addition, investors and car companies have been unresponsive to Fisker’s demands for a $150 million rescue, ending the company’s efforts to raise funding. Reports indicate that the firm is almost out of cash, casting doubt on its capacity to refund canceled bookings and adding insult to injury to an already dire financial situation.

According to the business, discounts of up to $7,000 are incorporated in the pricing of some Ocean cars. The sales start on Friday.

Critics have been quite critical of Fisker’s Ocean EVs, pointing out several issues that have plagued the company. Not even efforts to fix the problems have saved the company’s image; influential people like Marquez Brownley have said the car is the worst he’s ever driven.

Some reservation holders have decided to cancel their purchases completely because they are worried that their deposits won’t be fully refunded, adding to their anxiety. Fisker Inc.’s predicament is emblematic of the difficulties inherent in the electric car industry, which is very competitive and where success is dependent on ground-breaking innovation, solid financial footing, and consumer faith.

The future of Fisker Inc. is uncertain due to increasing cancellations and financial difficulties; stakeholders and industry watchers are on edge as they wait for additional developments.

Experts in the field believe the firm will go bankrupt.