Fisker's Troubles Deepen as Thousands of Reservation Holders Cancel

Chris Teague
by Chris Teague

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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Chris Teague
Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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  • Zipper69 Zipper69 on Apr 02, 2024

    Weren't they huddled with Toyota a while back ?

    • Dukeisduke Dukeisduke on Apr 03, 2024

      No, they tried to get a manufacturing agreement with Nissan.

  • Rick T. Rick T. on Apr 02, 2024

    “How did you go bankrupt?” Bill asked. “Two ways,” Mike said. “Gradually and then suddenly.” Ernest Hemingway’s 1926 novel The Sun Also Rises.

  • Analoggrotto Anyone who has spent more than 15 minutes around a mustang owner would know this will be in insta-hit.
  • FreedMike Interesting time capsule.
  • 6-speed Pomodoro I had summer and winter tires for a car years ago. What a pain in the butt. You've permanently got a stack of tires hogging space in the garage and you've got to swap them yourself twice a year, because you can't fit a spare set of tires in a sportscar to pay someone else to swap 'em.I'd rather just put DWS06's on everything. But I haven't had a sportscar in 8 years, so maybe that's a terrible idea.
  • ShitHead It kicked on one time for me when a car abruptly turned into my lane. Worked as advertised. I was already about to lean into the brake as I was into the horn.
  • Theflyersfan I look at that front and I have to believe that BMW and Genesis designers look at that and go "wow...that's a little much." Rest of the car looks really good - they nailed the evolution of the previous design quite well. They didn't have to reinvent the wheel - when people want a Mustang, I don't think they are going to cross-shop because they know what they want.