Amid a tumultuous time, California-based startup Fisker is facing a major setback with reports of tens of thousands of EV reservations being canceled by customers. This is a significant blow as the company is currently struggling to secure funding to sustain its operations.
Leaked data obtained by Business Insider reveals that over 40,000 reservations out of the 70,000 made for the Fisker Ocean have been canceled. These cancellations are occurring at an average rate of 70 to 80 per day based on recent internal metrics.
To cope with the cancellations, Fisker is required to refund a portion of the reservation fee, which costs $250. The total reimbursement amount is estimated to be around $9 million, although exact figures are not confirmed. Fisker has chosen not to comment on these cancellations or the leaked data.
Despite these challenges, Fisker has managed to deliver over 6,000 EVs since the release of its Ocean SUV last year, according to data obtained by Business Insider.
In an effort to boost sales, Fisker recently reduced prices on the Ocean by nearly 40%. The entry-level model, Ocean Sport, is now priced at $24,999, a significant decrease from its original price of $38,999. Similarly, the Ocean Extreme has been discounted from $61,499 to $37,499.
With uncertainties surrounding the company’s future, Fisker’s ability to provide servicing and parts in the long term remains questionable.
Fisker’s financial struggles were highlighted in its recent earnings call, where it expressed doubts about its ability to survive the year. Despite securing $121 million in funding, a subsequent $150 million commitment fell through, adding to the company’s challenges.
Last year, Fisker’s production fell short of its targets, delivering only about 4,700 EVs out of the promised 42,400. However, the stock price surge towards the end of the year provided a much-needed boost to the company.
Facing various production issues and compliance notices, Fisker is currently on shaky ground. With a history of delays in delivering vehicles to customers, the company’s future remains uncertain.
As Fisker navigates these turbulent times, the company’s fate hangs in the balance, with hopes resting on potential solutions yet to be found.
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