California-based EV maker Fisker Inc FSR on Monday cut prices on the high-end trim of its Ocean SUV in the U.S., while simultaneously raising prices on its Ocean Ultra and Sport trims.
What Happened: The Ocean Extreme trim is now priced at $7,500 less at $61,499. Customers who have already ordered the vehicle will receive a price adjustment, the company said, irrespective of whether the vehicle has gone into production.
"It is essential that Fisker responds to competitive realities in the rapidly growing EV market," CEO Henrik Fisker said.
Starting Nov. 6, the Fisker Ocean Ultra and Sport models will be priced higher. While the Ultra will be priced $3,000 higher at $52,999, the Sport trim will start at $38,999, an increase of $1,500. The current pricing will be available till Nov.5, the company said.
Why It Matters: With the new price cut, the Fisker Ocean Extreme trim is priced close to the higher-end trim of Tesla Inc‘s TSLA best-selling Model Y as compared to the Model S. Tesla’s Model Y Performance is currently priced at $52,490.
The price adjustments hint towards a shift in industry and company dynamics. During the company’s first-quarter earnings call in May, it said that it is not really worried about pricing.
"With Fisker, we have not raised our prices for 2 years when we announced them, and we're still cheaper or lower cost than our competitors," the CEO then said. Despite Tesla’s price adjustments, its vehicles cost the same as they did two years ago, he added, without explicitly naming Tesla and instead terming it the ‘one brand that we all know.’
A quarter later, the company revised its calendar year 2023 production volume guidance from 32,000-36,000 to 20,000-23,000. Its net loss totaled $85.5 million and $0.25 loss per share at the end of the second quarter.
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