Fisker Cuts Prices on Ocean Extreme SUV Amidst EV Demand Slowdown
Fisker Adjusts Pricing Strategy
Fisker, the luxury electric-vehicle manufacturer, made significant changes to its pricing strategy in response to a slowdown in electric-vehicle demand and increased competition. The company reduced the prices of its high-end Ocean Extreme SUV by 11% in the United States to $61,499 and by a similar percentage in Canada to C$79,799 ($58,166.78). In comparison, the starting price of the Tesla Model Y in the United States is $48,490. The move aims to address competitive realities in the rapidly growing EV market, according to Fisker CEO Henrik Fisker.
Price Adjustments for Lower-Priced Variants
In addition to the Ocean Extreme, Fisker also raised the prices of its lower-end Ocean Ultra and Sport models in the United States by 6% and 4%, respectively. The Ocean Ultra will now be priced at $52,999, while the Sport model will be priced at $38,999. These price increases will also be reflected in the Canadian market. However, Fisker has assured customers who have already ordered or purchased an Ocean Extreme that they will receive a price adjustment of $7,500 in the United States and C$10,200 in Canada, regardless of whether their vehicle has gone into production.
Facing Tesla’s Price War
The price adjustments made by Fisker come amidst a price war initiated by industry giant Tesla. In an effort to solidify its position in the competitive market, Tesla has been lowering prices, putting pressure on EV startups. These startups are grappling with rising borrowing costs and sticky inflation, making it challenging to maintain profitability.
Lucid Group’s Competitive Move
Another luxury electric-vehicle manufacturer, Lucid Group, recently launched a more affordable version of its Air Pure sedan. Priced at $77,400, the rear-wheel drive variant aims to stimulate demand in the market.
The Future of Fisker
As the EV market continues to evolve, Fisker’s pricing adjustments reflect the company’s commitment to adapting to changing market conditions. With the goal of remaining competitive in the rapidly growing EV industry, Fisker aims to attract customers with its revised pricing strategy.
