Fisker Inc (NYSE:FSR) shares traded lower on Monday morning after the electric vehicle (EV) maker slashed the prices of its Ocean Extreme SUV in the United States and Canada amid a slowdown in demand for EVs and Tesla’s ramp-up of the EV price war with its own discounts.
The Ocean Extreme SUV has been discounted by about 11% in both countries, now costing US$61,499 in the U.S. and C$79,799 in Canada, effective immediately.
Customers who have already ordered the EV will receive a $7,500 price adjustment in the U.S. and a C$10,000 price adjustment in Canada, even if the order is already in production.
“It is essential that Fisker responds to competitive realities in the rapidly growing EV market,” CEO Henrik Fisker said.
“We want our customers to have greater access to the Ocean and to be able to take advantage of its exciting combination of innovative features, striking design, sustainable materials, and class-leading range.”
The company also said it would be raising the price of two of its other models, the Fisker Ocean Ultra and Sport, from November 6, 2023.
The Fisker Ocean will be priced at US$52,999, up from US$49,999, and the Sport will increase from US$37,499 to US$38,999, representing increases of about 6% and 4% respectively.
“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,” CEO Fisker said.
"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 shares slipped 2.3% to US$5.32 shortly after the market opened on Monday.
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