Fisker has slashed the price of its Ocean SUV by $24,000 in an attempt to stay alive

• The expensive Fisker Ocean is now cheaper than the average car.
• The big discount comes as EV startups are desperately trying to avoid bankruptcy.
• A large discount can be very bad for resale values.

FiskerOcean SUV’s price tag just got cheaper.

The struggling electric car startup said on Tuesday it would cut the most expensive price the sea for nearly 40% to $37,499. That brings the price of the Ocean Extreme to about $6,700 less the average price paid for any new car this month.

Fisker said in a press release. That is guaranteed price you can’t find that often on any new car parts these days

The sharp price cuts come as Fisker makes desperate attempts avoid bankruptcy. In the past month, Fisker halted production, warned investors of pending bankruptcy, and faced delisting.

Price cuts are unusual in the EV segment, where price wars have been waged Elon Musk’s Tesla has caused the average price paid for EVs to drop significantly over the past year. As EV buyers become more cautious, car companies are taking a new approach cheap electric models.

Bloomberg first reported the Fisker discount. The company told Bloomberg that the discounts on the Sea are designed to make the electric SUV “an affordable and compelling EV option.”

But a discount of this magnitude could do serious damage to the company’s sales values, hurting owners who spent big on Fisker’s luxury vehicles. In an instant, coveted and rare EVs can lose half their value.

Do you own a Fisker? Contact this reporter at (email protected).