Another major blow to California-based startup Fisker, as tens of thousands of customers reportedly have canceled their EV reservations to date – which is some serious bad buzz amid a tumultuous time as the company scrambles for funding to stay alive.
Leaked data obtained by Business Insider states that to date Fisker customers have canceled orders by the tens of thousands – not that it’s terribly surprising given the dire news coming out of the company of late.
“More than 40,000 out of well over 70,000 reservations for the Fisker Ocean have been canceled to date,” the report said. The “to date” part means presumably this has been happening for a while, since according to the internal metrics procured, Fisker has averaged around 70 to 80 cancellations per day in a recent week-long average.
Still, a tough break for a company that desperately needs to generate more revenue, and Fisker has to give back a portion of the fee customers spent on reserving a vehicle, which costs $250 to reserve. Fisker’s website says that the amount is refundable, with the exception of a $25 processing fee.
The total amount of 40,000 reservation reimbursements adds up is an eye-watering $9 million, not that that is the exact figure. Fisker has so far declined to comment on the data leak or cancelations.
In total, Fisker has delivered more than 6,000 EVs to date since releasing its Ocean SUV in June last year, according to the metrics seen by Business Insider.
Last week, Fisker dropped prices on the Ocean by nearly 40% to boost sales, with the lowest-priced option, the Ocean Sport, available for $24,999 – a nearly $14,000 price difference from its regular retail price of $38,999. The Ocean Extreme shaved off $24,000 from its regular price $61,499 to $37,499.
Of course, if you need servicing or new parts in the future, we’re not sure anyone will be available to take your call.
In February, Fisker said in its earnings call that it might not be able to make it through the year. In a regulatory filing earlier last month, Fisker said it has paused production for six weeks and stated that it had $121 million in the bank. March 18, the company then announced a fresh commitment of $150 million in additional funding, but then said a few days later that the deal fell through.
Fisker made more than 10,000 EVs last year, well below the 42,400 originally promised, but it delivered only about 4,700. Still, its stock price soared at the end of last year as a result – which gave the company a boost it badly needed.
Of course, Fisker has been playing on the edge for months now, after slashing its production guidance last year as it struggled to ramp up deliveries and dealing with noncompliance notices from Nasdaq this year. The company has faced a long line of issues and delays too in getting its EVs to customers who had paid for them.
Now, Fisker probably needs nothing short of a miracle, but we’ll stayed tuned.