EV startup Fisker slashes prices of Ocean SUV amid debt troubles

(Reuters) -Electric-vehicle startup Fisker said on Wednesday it was cutting the prices of its 2023 electric Ocean SUV model, signaling an attempt by the cash-strapped firm to drum up demand and ease concerns regarding its uncertain future.

The company slashed the price tag of the entry level version - Ocean Sport - by around 36%, or $14,000, bringing it down to $24,999 from $38,999 earlier.

The company said it will reduce the price of the top-end version of the vehicle, called "Extreme", by around 39%, or $24,000, to $37,499.

Fisker also cut the price of its Ocean Ultra version to $34,999 from $52,999.

Fisker delivered about 1,300 vehicles in 2024 and the value of the inventory of completed vehicles was more than $200 million, according to the company.

The price cuts come a few days after Fisker's talks with a large automaker about a deal collapsed, sending the company's shares plunging and prompting the New York Stock Exchange to delist the stock.

The price cuts signal an attempt by Fisker to raise more funds to meet its required debt obligations, as the company faces a potential default.

The termination of talks with the unnamed automaker has led Fisker to explore strategic options including in- or out-of-court restructurings and capital markets transactions, the startup said earlier.

Last week, the company said it would pause production of its electric vehicles for six weeks and raise up to $150 million in funding by selling convertible notes after missing an interest payment.

The Fisker Ocean competes with Tesla's Model Y SUV, and a growing crowd of mid-size electric SUVs such as the Ford Mustang Mach-E.

(Reporting by Zaheer Kachwala and Nilutpal Timsina in Bengaluru; Editing by Devika Syamnath and Rashmi Aich)