Fisker Inc., the electric vehicle (EV) manufacturer that recently filed for Chapter 11 bankruptcy, has asked for court approval to sell the remaining inventory of one of its electric car brands, the Ocean.
At one point, Fisker Oceans sold at $70000, but, under the terms of the proposed sale, they would come to ~$14000 each.
Fisker Incorporated Founded in 2016
Fisker Inc. emerged from Fisker Automotive in 2016 and went on to create the Fisker Ocean, an electric SUV that had a rocky start to its production.
The co-founder of Fisker Automotive, Henrik Fisker, was a designer responsible for some iconic car designs at Aston Martin, such as the DB9 and the V8 Vantage, as well as BMW’s Z8.
Filed For Bankruptcy Last Month
Last month, Fisker Inc. filed for Chapter 11 bankruptcy, meaning their financial affairs will now have to be overseen by the court.
Their financial woes are likely related to production issues with the Fisker Ocean, which had experienced a number of issues with both its software and hardware.
Not the Only EV Company With Issues
Fisker Inc. is not the only EV manufacturer that has suffered in the past couple of years, with several other EV manufacturers filing for bankruptcy.
Proterra, Lordstown and Electric Last Mile Solutions have all filed for bankruptcy for various cited reasons, from global supply chain issues to reduced demand.
Limited Supply of Oceans
There are just over 3000 operational Fisker Oceans yet to be sold by the company.
The Fisker Ocean is a battery electric SUV intended for the mass market. The first vehicles shipped in 2023.
Fisker Ocean Issues
Not long after the Ocean began to ship to customers, software and hardware issues began to be reported with the SUVs.
It has been investigated for issues with braking, randomly changing driving modes and door failures.
Fisker Sales Issues
Last year, Fisker delivered only half of the over 10000 vehicles it produced for the year.
It had originally operated on a direct-to-consumer basis but pivoted to working with dealerships across the US and Europe to shift their stock.
Sale of Last Batch
The remaining Fisker Oceans are intended to be sold to American Lease, although the company will need the approval of the court overseeing its Chapter 11 bankruptcy restructuring.
American Lease rent cars, mostly to ride-share drivers in New York City. The remaining 3321 vehicles will cost American Lease $46.25 million.
Prices Dropping Repeatedly
Throughout the bankruptcy process, Fisker have been forced to reduce prices drastically.
They had initially reduced the price of the cheapest Ocean to $25000. The American Lease sale will mean the cars, per unit, would now go for about $14000.
Cars Need to Be Sold Rapidly
The cars will need to be sold rapidly for Fisker to undergo an “orderly liquidation,” according to Fisker’s lawyers.
Fisker’s lawyers insist the sale must go through by July 12, but will have to await the verdict of the court before then.
