Fisker Requests Court Approval To Sell Ocean EV Inventory At $14,000 Each

After its Chapter 11 bankruptcy proceedings, Fisker has asked a judge for permission to sell its remaining inventory of Ocean electric vehicles (EVs) at a fraction of their original price.

In detail, the company is seeking approval to offload 3,321 Ocean units to New York-based American Lease for around $14,000 per unit, a massive discount of nearly 80% from their original retail prices.

The proposed sale, totaling $46.25 million, arrives as Fisker struggles to manage its financial obligations and inventory in the wake of its recent bankruptcy filing. The Ocean SUV, Fisker’s flagship model, initially reached the EV market with price points ranging from $39,000 to $70,000, depending on the trim level.

Moreover Fisker’s dire financial situation is highlighted by the urgency of the proposed sale. The company has stated in its filing that without court approval by July 12, it will be unable to fund critical expenses including payroll and taxes.

According to court documents, the sale prices will vary based on the condition of the vehicles. New Oceans in “Good Working Order” are aimed for the top price of $16,500, while damaged or previously titled EVs could go for as low as $2,500 to $3,200.

Notably, American Lease, a company that provides vehicles to ride-share drivers in the New York City area, had initially offered to purchase 2,100 Ocean EVs on May 30, just two weeks before Fisker’s bankruptcy filing. The leasing firm later increased its offer to acquire all 3,321 Oceans ready for sale.

Fisker’s Encountered Challenges

From its journey in the EV market this year, Fisker made earlier attempts to boost sales and raise capital by utilizing dramatic price cuts by up to $24,000 on some models and halted production at its contract manufacturer, Magna, to reduce inventory.

Despite these efforts, Fisker still faced numerous challenges, especially beyond financial constraints. Recently, its Ocean model saw major recalls of more than 18,000 units across North America and Europe due to concerns over faulty software and noncompliance with safety standards.

Read More: Fisker Recalls Over 18,000 Ocean EVs

In terms of its current situation, if the bankruptcy court gives its approval, it could provide a lifeline for the company while providing an opportunity for American Lease to acquire a fleet of EVs at an unprecedented discount.

As the EV market becomes increasingly competitive, Fisker’s struggle serves as a cautionary tale for other EV startups. With the outcome of this proposed sale and Fisker’s bankruptcy proceedings being closely observed by industry, the company’s state will be depended on the bankruptcy court’s decision on this proposed sale that will be expected to arrive soon.

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