Fisker's Troubles Deepen as Thousands of Reservation Holders Cancel

Fisker’s on the ropes, but hits keep on coming. The upstart automaker recently warned that it could face bankruptcy and said that its negotiations with another automaker for a potential investment had fallen through. Business Insider recently reported on leaked documents that show Fisker’s troubles are deepening, as the EV maker has seen tens of thousands of order cancellations since its troubles became glaringly public.

The publication reported that more than 40,000 of the more than 70,000 Fisker reservation holders had canceled, averaging 70 to 80 per day in recent weeks. While these aren’t full-on orders, the reservation holders are due to receive their $250 deposits back, less a $25 fee. That could cost the automaker millions at a time when funds are at a premium. BI said that Fisker had a few thousand orders canceled, and the automaker’s website says it will retain the $5,000 order deposit if the delivery process has begun.

Fisker cut prices on the Ocean SUV, with some versions selling for as little as $25,000. That has tanked values of vehicles already on the road, as Edmunds reported that its long-term test vehicle, which it purchased for more than $69,000 earlier this year, had dropped in value by almost 70 percent after the price changes.

The Fisker Ocean is a significant risk, even at the lower price point. If the company goes under, finding parts, getting repairs, and receiving software updates will become extremely difficult or impossible in some cases. That said, the Ocean might be more valuable than $25,000 in parts for enterprising buyers with some technical knowledge.

[Image: Fisker]

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