Judge Oks Fisker Plan To Liquidate Its Ocean Evs For $14,000 Apiece

In a surprise move, a Delaware bankruptcy court has given the green light to Fisker Inc. to liquidate its inventory of Ocean electric vehicles, effectively selling off the remaining units for $14,000 each.

The California-based electric vehicle (EV) manufacturer had been struggling to recover from a series of setbacks, including production delays, regulatory issues, and a lack of capital. Despite efforts to revive the company, Fisker’s financial woes persisted, leading to a Chapter 11 bankruptcy filing in June 2020.

As part of the bankruptcy proceedings, the company sought approval from the court to liquidate its remaining inventory of Ocean EVs, which was valued at approximately $100 million. The automaker had initially hoped to sell the vehicles for around $30,000 to $40,000 each, but the court’s ruling means that the vehicles will be sold for significantly less.

The decision to liquidate the inventory was met with mixed reactions from industry analysts and investors. Some have criticized the move, citing concerns about the potential impact on the electric vehicle market and the reputational damage to the Fisker brand. On the other hand, others have viewed the sale as a necessary step to clear the company’s inventory and allow it to move forward with a new business strategy.

According to insiders, the $14,000 price tag for each Ocean EV is largely due to the vehicles’ remaining inventory and the need to recoup some of the costs associated with building and storing the vehicles. The sale is expected to be a liquidation auction, with potential buyers bidding on the vehicles in a competitive market.

Fisker has already received interest from several potential buyers, including electric vehicle startup Lucid Motors, which has reportedly expressed interest in purchasing the remaining inventory. If the sale is successful, it could potentially pave the way for Lucid Motors to enter the market with a lower-cost, more affordable electric vehicle option.

While the liquidation of Fisker’s Ocean EVs is a setback for the struggling automaker, it also marks an opportunity for the company to rebrand and refocus its efforts on a new line of vehicles. Fisker has already announced plans to debut a new, more affordable electric vehicle, the Fisker PEAR, in the coming years.

In a statement, Fisker CEO Henrik Fisker expressed optimism about the company’s future prospects, stating, “We are committed to creating a new, more sustainable future for Fisker and are excited to move forward with our new product plans and strategy.”

The liquidation of Fisker’s Ocean EVs is expected to be completed in the coming months, with the sale proceeds going towards paying off debts and restructuring the company’s finances. As the electric vehicle market continues to evolve, it remains to be seen how Fisker will emerge from its current challenges and capitalize on the growing demand for eco-friendly transportation options.