Fisker lowers price on most expensive Ocean

CEO cites market’s “competitive realities”, but price cuts are limited to the Ocean Extreme trim

Fisker lowers price on most expensive Ocean
One Ocean trim is getting a price haircut, but others are going up

Californian EV start-up Fisker has announced a price reduction for the most expensive trim level on its Ocean e-SUV.

The price cut will apply to the firm’s Ocean Extreme trim. Conversely, Fisker will raise US pricing on the Ocean Ultra and Sport trim levels on 6 November.

In the US, Fisker is lowering the price of the Extreme trim by $7,500 from $68,999 to $61,499 and, in Canada, by C$10,200 from C$89,999 to C$79,799. Both price changes will come into effect immediately.

Customers who have already ordered or purchased an Ocean Extreme will receive the same reduction as a price adjustment, even if their vehicle has already gone to production, the company says.

Market conditions

The company’s eponymous founder and CEO Henrik Fisker admits that it is pressure from the market competitors that has led to the reduction on the Ocean Extreme. “It is essential that Fisker responds to competitive realities in the rapidly growing EV market,” he says.

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He is likely referring to Tesla, which has cut prices in a bid to counter higher interest rates and maximise affordability. Other mainly US-focused OEMs have also cut EV prices in recent months, including Lucid and Ford.

However, Fisker’s price cut applies only to the highest spec of trims for the Ocean and will not have the wide-ranging effects of Tesla’s comprehensive price cuts on the Model Y. Furthermore, Fisker aims to recoup the lost revenue from the Ocean Extreme on its Sport and Ultra models.

“We expect our overall margins will be unaffected because higher Sport and Ultra pricing, combined with our cost-reduction initiatives and lower input prices, will support the anticipated trajectory of our profits,” Fisker says.

“We are very confident in the continued demand for the Ocean and we expect the Sport and Ultra models to be the highest sellers starting in 2024,” he adds.

The company announced separately that it is opening orders for 2024 for all trim levels of the Pear SUV, which Fisker has promised — to some scepticism — to sell at a profit for under $30,000.

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