Fisker CEO Calls On US To Improve Incentives For Affordable EVs Under '75 And More For 55 And Less' Proposal

Fisker Inc FSR CEO Henrik Fisker on Thursday called upon the federal government with a “75 And More for 55 And Less” proposal to improve the existing incentives for electric vehicles in the United States to maintain global competitiveness and quicken adoption. 

What Happened: In a LinkedIn post, Fisker proposed to implement an additional rebate of $10 per mile of certified driving range for battery electric vehicles (BEVs) that come with a ticket price of $55,000 and less. These rebates in addition to the existing $7,500 incentive would be applicable at the time of sale and bring down the actual price of the electric vehicle significantly.

An electric vehicle with a $45,000 price tag and powered by a certified 300-mile range battery for instance will receive a point-of-sale rebate of $7,500 and an additional $3,000 for the battery range for a total of $10,500, bringing down the transaction price to $34,500.

Fisker notes that the current $7,500 government incentive on electric vehicles is capped at 200,000 units per manufacturer and rewards affluent early adopters. As a result, some companies, which have more affordable offerings, are no longer eligible for the federal tax credit.

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“The next round of subsidies must focus on encouraging manufacturers to develop and launch more affordable BEVs, as well as incentivize mainstream buyers with clean energy vehicles which suit their wants and needs, even on a budget,” Fisker said in the post.

The EV maker Fisker, which competes with Tesla Inc TSLA — a company that once employed Henrik Fisker and even sued him over design secrets, plans to begin production of its Ocean SUV at its European vehicle assembly facility in late 2022. 

California-based Fisker is also developing a more affordable, sub-$30,000 electric vehicle that it plans to launch by the end of 2023 with the help of Apple Inc AAPL supplier Hon Hai Precision Industry Co., Ltd. HNHPF. 

See Also: Fisker CEO's Tweet Reveals Additional Details for Project Pear EV Collab

Fisker stock has been seeing traction this week after positive commentary from BofA Securities analyst John Murphy and Morgan Stanley's Adam Jonas.

Price Action: Fisker shares closed 17% higher at $15.15 on Wednesday. 

Photo: Courtesy of Fisker