LOS ANGELES - Fisker Inc. (NYSE:FSR), a player in the electric vehicle (EV) market, has announced significant price reductions for its 2023 Ocean models in the United States. The company has reduced the Manufacturer’s Suggested Retail Price (MSRP) of its high-end Ocean Extreme trim by $24,000, bringing it down to $37,499 from the previous $61,499. The mid-level Ocean Ultra trim now stands at $34,999, reduced from $52,999, and the entry-level Ocean Sport is priced at $24,999, down from $38,999.
These price reductions are set to take effect on Friday, March 29, 2024, and are applicable to the 2023 model year vehicles currently in stock. The move is aimed at making the Fisker Ocean a more competitive and affordable choice for consumers in the EV market.
The 2023 Ocean models come with the latest Ocean OS software version 2.0, and some vehicles include additional options valued at up to $7,000. These options, such as special colors, 22-inch wheels, and unique interiors, are included in the new discounted price.
Fisker's strategy includes frequent software updates delivered over-the-air (OTA), enhancing vehicle features and performance post-purchase. The company is also expanding its dealer partnerships in North America and Europe, having shifted to a Dealer Partner model in January 2024 to streamline the purchase process for customers.
The Ocean Extreme boasts an EPA-estimated range of 360 miles, which Fisker claims is the longest of any new electric SUV in its segment in the U.S. It also has a WLTP range of 439 miles for European markets, making it a leader in its class there as well. The vehicle is noted for its sustainability, utilizing recycled and bio-based materials, being produced in a carbon-neutral facility, and featuring rooftop solar panels that can add up to 1,500 miles of range annually under ideal conditions.
InvestingPro Insights
In the face of Fisker Inc.'s recent price reductions for its 2023 Ocean models, potential investors and market watchers may find these real-time metrics and insights from InvestingPro valuable for understanding the company's financial health and market position:
- The market capitalization of Fisker Inc. currently stands at a modest $52.55 million, reflecting the market’s valuation of the company.
- With a staggering revenue growth of 79,693.27% in the last twelve months as of Q1 2023, Fisker shows a substantial increase in sales, which could be a positive sign for the company's future prospects.
- However, the company is trading at a low Price / Book multiple of 0.2, suggesting that the market values the company's assets at a significant discount relative to its equity.
InvestingPro Tips highlight several challenges and opportunities for Fisker:
- Despite the impressive sales growth, Fisker operates with a significant debt burden and may have trouble making interest payments on its debt, which is a critical consideration for investors.
- On a positive note, analysts anticipate sales growth in the current year, which could be a result of strategic moves like the recent price reductions for the Ocean models.
For those interested in a deeper analysis, InvestingPro offers additional tips on Fisker Inc., such as the company's cash burn rate, stock volatility, and profit margins. To explore these insights and make more informed investment decisions, investors are encouraged to use the promo code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription. There are 21 additional InvestingPro Tips available, which can provide further clarity on Fisker's financial trajectory and stock performance.
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