Fisker Announces Reduced MSRP in U.S. on Many 2023 Model Year Vehicles

Rhea-AI Summary

Fisker Inc. announces significant price reductions on 2023 Ocean models in the US, with the Ocean Extreme trim dropping from $61,499 to $37,499. The move aims to make Fisker EVs more affordable and competitive in the market, with additional options included in the discounted prices. The reductions will be effective from March 29, 2024, as Fisker focuses on sustainability and dealer partnerships.

Insights

Automotive Industry Analyst

The recent price reduction announced by Fisker Inc. for its 2023 Ocean models represents a significant strategic move within the electric vehicle (EV) market. This aggressive pricing strategy could potentially disrupt the current EV pricing landscape, as the Ocean Extreme's new price point undercuts many of its competitors in the mid-size SUV segment. The reduction not only makes the Ocean models more accessible to a broader consumer base but also reflects Fisker's commitment to sustainability, which could strengthen the brand's image and appeal.

From an industry perspective, Fisker's decision to lower prices could trigger a competitive response from other EV manufacturers, potentially leading to a price war. This could result in increased market penetration for electric SUVs but may also squeeze profit margins across the industry. Investors should monitor how competitors react and whether this move will lead to increased market share and revenue growth for Fisker, or if it will put pressure on the company's financials in the short term.

Sustainability Expert

Fisker's emphasis on the sustainability of the Ocean Extreme, from its carbon-neutral production facility to the integration of recycled materials and solar panels, aligns with growing consumer and investor interest in environmentally responsible products. The company's claim of the lowest published carbon footprint for an electric SUV could strengthen its position in a market where sustainability is increasingly becoming a differentiator. However, it is essential to scrutinize the lifecycle analysis (LCA) data and the real-world impact of solar panels to validate these sustainability claims.

For stakeholders, the long-term benefits of Fisker's approach may include brand loyalty and resilience against potential regulatory changes favoring sustainable practices. Yet, the financial viability of offering high-value features at reduced prices should be evaluated, as it may affect the company's ability to invest in future sustainability initiatives.

Financial Analyst

The substantial MSRP reductions announced by Fisker represent a bold move aimed at capturing a larger share of the EV market. While this could stimulate demand and potentially increase sales volume, it's important to consider the impact on the company's revenue and margins. The inclusion of $7,000 worth of additional options in the discounted price suggests a significant value proposition to consumers, but it also indicates that Fisker is willing to absorb a considerable cost to gain market traction.

Investors should examine Fisker's cost structure and production efficiency to assess whether the company can sustain these lower price points without compromising profitability. Additionally, the impact of this pricing strategy on Fisker's cash flow and capital requirements should be a focal point for financial analysis, especially as the company continues to expand its dealer partnerships and invest in software updates and customer support.

• Fisker reduces US MSRP on the 2023 Ocean Extreme trim from $61,499 to $37,499.¹

• 2023 Fisker Ocean Ultra trims reduced from $52,999 to $34,999 MSRP, and 2023 Sport trims from $38,999 to $24,999 MSRP.¹
• Fisker is strategically positioning Ocean to be a more affordable and compelling EV choice, competitively available to EV buyers.

LOS ANGELES--(BUSINESS WIRE)-- Fisker Inc. (“Fisker”), driven by a mission to create the world’s most emotional and sustainable electric vehicles, today announced reductions in Manufacturer’s Suggested Retail Price (MSRP) on many model year 2023 Fisker Oceans in the US. Fisker is lowering the MSRP of the 2023 Ocean Extreme trim by $24,000, to $37,499 from $61,499 MSRP.¹

Fisker Announces Discounts in U.S. on Many 2023 Model Year Vehicles. (Photo by Fisker Inc.)

In addition, The 2023 Ultra trim will be priced at $34,999 MSRP, reduced from the current $52,999; and the 2023 Sport will be priced at $24,999 MSRP, reduced from the current $38,999.¹

All reduced-MSRP Fisker Ocean trims are 2023 models, with Fisker’s latest 2024 Ocean OS software version 2.0 installed. Certain Ocean vehicles come equipped with as much as $7,000 worth of additional options – such as colors, 22” wheels, interiors, and other options – included in the discounted price. MSRP reductions on 2023 model year vehicles will go into effect Friday, March 29, 2024.

As Fisker focuses on our vision of A Clean Future for All and delivering the world’s most sustainable vehicles, the company continues to pursue dealer partnerships in North America and Europe, having announced the strategic shift to a Dealer Partner model in January 2024.

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 Fisker team is working to give Fisker owners the software updates, service, and customer support they require, and Fisker Dealer Partners are working together with the company to give Fisker buyers excellent value, a simple-to-navigate purchase process, and quick access to 2023 inventory of the award-winning Fisker Ocean.

The Ocean Extreme has an EPA-estimated range of 360 miles², the longest range of any new electric SUV in its segment sold in the United States today³ and a WLTP range of 439 miles / 707 km⁴, the longest range of any electric SUV in its segment on the European market today.⁵ The Fisker Ocean Extreme has the lowest published carbon footprint of any electric SUV⁶, uses over 110 lbs. /50 kg. of recycled and bio-based materials, is built at a carbon-neutral facility, and integrates rooftop solar panels, adding up to 1,500 miles/2400 km per year of range.⁷

¹ Estimated pricing shown applies to the continental US and excludes delivery, finance, tax, title, registration, and other government fees. Maintenance is not included. Pricing is subject to change and will be based on your final vehicle configuration. Pricing does not include any government incentives to which you may be entitled. Offer limited to 2023 model year vehicles currently in stock and is available from March 29, 2024 until all 2023 model year inventory is sold.
² EPA estimated range. Measurements conducted with standard 20” wheels. Actual results may vary for many reasons, including driving conditions, wheel size, state of battery charge, and how the vehicle is driven and maintained.
³ Mid-size SUVs in comparable price segment.
⁴ This WLTP range number applies to Fisker’s European markets. WLTP measurements conducted with standard 20” wheels. Actual range will vary with conditions such as external environment, vehicle configuration, wheel size and vehicle use.
⁵ D-Segment Vehicles, as classified by GlobalData.
⁶ Based on date of 2023 Fisker Ocean LCA publication and public information available at that time.
⁷ Based on Fisker simulations. Ideal conditions assume solar irradiation of 5.4 kWh/m2/day and steady commuter driving. Actual results vary with conditions such as external environment and vehicle use.

About Fisker Inc.

California-based Fisker Inc. is revolutionizing the automotive industry by designing and developing individual mobility in alignment with nature. Passionately driven by a vision of a clean future for all, the company is on a mission to create the world’s most sustainable and emotional electric vehicles. To learn more, visit Fiskerinc.com and enjoy exclusive content across Fisker's social media channels: Facebook, Instagram, X, YouTube, and LinkedIn.

Download the revolutionary new Fisker mobile app from the App Store or Google Play.

Forward-Looking Statements

This press release includes forward-looking statements, which are subject to the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "feel," "believes," “expects," "estimates," "projects," "intends," "should," "is to be," or the negative of such terms, or other comparable terminology and include, among other things, the quote from our chief executive officer, statements regarding any potential future automotive original equipment manufacturer (or equipment or part manufacturer) transactions and other future events that involve risks and uncertainties. Such forward-looking statements are not guarantees of future performance or future events and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein due to many factors, including, but not limited to: Fisker's limited operating history; Fisker’s ability to continue as a going concern; Fisker's ability to enter into additional manufacturing and other contracts with Magna, OEMs, or tier-one suppliers in order to execute on its business plan;  the risk that OEM and supply partners do not meet agreed-upon timelines or experience capacity constraints; Fisker may experience significant delays in the design, manufacture, regulatory approval, launch and financing of its vehicles; Fisker's ability to execute its business model, including market acceptance of its planned products and services; Fisker's inability to retain key personnel and to hire additional personnel; competition in the electric vehicle market; Fisker's inability to develop a sales distribution or dealership network; and the ability to protect its intellectual property rights; and those factors discussed in Fisker's Annual Report on Form 10-K, under the heading "Risk Factors", filed with the Securities and Exchange Commission (the "SEC"), as supplemented by Quarterly Reports on Form 10-Q, and other reports and documents Fisker files from time to time with the SEC. Any forward-looking statements speak only as of the date on which they are made, and Fisker undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240327863907/en/

European Media:

Press.europe@fiskerinc.com

US Media

Fisker@GODRIVEN360.com

Customer service: Support@fiskerinc.com

Fisker Inc. Communications:

Matthew DeBord

VP, Communications

mdebord@fiskerinc.com

Franziska Queling

Regional Head of Public Relations, Europe

fqueling@fiskerinc.com

Investor Relations:

Eric Goldstein

Head of Investor Relations

egoldstein@fiskerinc.com

Source: Fisker Inc.

FAQ

What is the new MSRP for the 2023 Fisker Ocean Extreme trim?

The MSRP for the 2023 Fisker Ocean Extreme trim has been reduced from $61,499 to $37,499.

When will the MSRP reductions on 2023 Fisker Ocean models take effect?

The MSRP reductions on 2023 Fisker Ocean models will go into effect on Friday, March 29, 2024.

What additional options are included in the discounted prices of certain Fisker Ocean vehicles?

Certain Fisker Ocean vehicles come equipped with as much as $7,000 worth of additional options, such as colors, 22” wheels, interiors, and other options.

What is Fisker's focus regarding sustainability and dealer partnerships?

Fisker is focusing on sustainability and dealer partnerships to deliver the world’s most sustainable vehicles and provide excellent value to buyers.

What is the EPA-estimated range of the Fisker Ocean Extreme trim?

The Fisker Ocean Extreme trim has an EPA-estimated range of 360 miles, the longest range of any new electric SUV in its segment in the US.