EVs are supposedly the next big wave in the auto industry, as exemplified by the huge investments by automakers to go electric. It seems like a month doesn't go by without a new EV taking the stage. In 2024, it's estimated that at least 134 EV models are for sale. But the Fisker Karma may soon be off that list if things continue to go as badly as they have been for the brand. The most recent news is that the company has lost over 40,000 reservations of the Fisker Ocean electric SUV, its only model currently.
This is fuel to an already big fire that includes the company fighting against filing for bankruptcy by dropping the price of its Ocean by an insane 39 percent. It's also under investigation by the NHTSA for three safety issues: door latches failing, powertrain malfunctions, and even brake failures. Yikes. With regard to the order fiasco, Fisker has received between 70 and 80 cancellations per day, amounting to over 40k reservations lost. The company has to refund those customers, too, and it amounts to about $9 million. To make things worse, the company has numerous cars unsold on lots. That's not good news.
Reservations cost $250 for each Ocean and $100 for each additional reservation. Fisker can only keep a meager $25 processing fee for each reservation reservation. These customers are better off buying one at current drastically reduced prices, up to $24,000 less than the original price. Fisker needs to do this in order to raise cash and not go under. The really bad news is that customer confidence in the brand is at near rock-bottom, and that means buyers may not want to buy the Ocean even at steeply discounted prices.
Fisker had rolled out concepts of its compact PEAR, Alaska pickup truck, and a four-door convertible called the Ronin. Reservations for those models were being taken by the company, but it's doubtful that the brand will have enough cash to even embark on production of any or all of them. They may even have to refund deposits received for them, more fuel on this smoking electric fire. Gah, what a mess.
Only time will tell if the company will be able to stave off bankruptcy, but it doesn't look good. Stagnant EV sales also doesn't help matters, and Fisker certainly has a near-vertical uphill battle to fight. Safety problems, canceled orders, and financial trouble make for one seriously ugly combination.
