EV startup Fisker cuts prices of Ocean SUV amid debt issues

Electric vehicle startup Fisker said Wednesday it is cutting the price of its Ocean electric SUV, signaling the cash-strapped company’s efforts to boost demand and ease concerns about its uncertain future.

The company said it will drop the price of the final version of the car, dubbed the “Extreme,” by about 39%, or $24,000, to $37,499.

Fisker said other variants of the Ocean SUV will be more affordable to position the company as an “affordable and compelling EV option.”

News of the price cut comes days after Fisker’s talks with the automaker about the deal collapsed, causing the company’s stock to plummet and the New York Stock Exchange to take the stock private.

The price cut reflects Fisker’s attempt to raise more cash to meet debt obligations as the company faces a possible default.

The suspension of talks with the unnamed automaker has prompted Fisker to explore strategic options including in- or out-of-court restructuring and capital markets activities, the company previously said.

The Fisker Ocean competes with Tesla’s Model Y SUV and a growing number of mid-size electric SUVs such as the Ford Mustang Mach-E. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Devika Syamnath)