Photo: Fisker
Fisker is liquidating its vehicle inventory to cover vital expenses. The EV startup has reached a tentative deal with the New York-based firm American Lease to sell the remaining 3,231 Ocean SUVs for up to $46.3 million. Pending court approval, American Lease will pay between $2,500 and $16,500 for each Ocean SUV, depending on the vehicle's condition.
In light of Tesla's success, many startups tried to replicate it. Before the pandemic hit, people thought anything was possible, and the capital market was handing money to anyone who promised to launch an electric vehicle. Fisker was among the most promising, at least on paper, with an Ocean SUV that had a decent design, great features, and the benefits of Magna Steyr's manufacturing expertise.
However, Fisker ultimately failed its customers, selling them poorly built vehicles that suffered from countless issues. It's impossible to survive when you fail your customers, and Fisker learned this the hard way. The startup couldn't sell half of the EVs it built in 2024. With massive debt and very little chances to find new buyers for its failed vehicles, Fisker filed for bankruptcy protection on June 17. Many companies use this form of protection to reorganize and start fresh, but for Fisker, this is only a preliminary step toward Chapter 7.
The startup is already liquidating assets, including 3,231 vehicles in the inventory, to fund vital expenses such as payroll and taxes. The Fisker Ocean used to sell for upwards of $70,000 in its heydays, but now people turn away even when priced at $25,000. There is no warranty, no service assistance, and no replacement parts should the cars ever need them (and, boy, they do, as many Ocean owners found out).
In a previous article, I assumed anyone buying an Ocean would risk writing off their investment. That included American Lease, a supplier of leased cars to Uber and Lyft drivers in New York City. American Lease was rumored to buy Fisker inventory in bulk when the startup filed for bankruptcy in June. However, even the worst cars can be a great deal if you get them for nothing. And that's the deal American Lease got from Fisker. The startup got rid of all the remaining 3,231 Ocean EVs for about $46 million.
This resulted in a median price of $14,240, which already sounds crazy for what once was a luxury electric vehicle. However, some damaged cars were sold for much less, starting at $2,500. Others previously titled but otherwise in perfect condition were priced at $3,200. The top $16,500 price was paid for 2,711 new vehicles in "good working order," which is still a pretty good deal.
Just because Fisker and American Lease agreed to the deal, it doesn't mean it would go through. First, the agreement must be approved by the bankruptcy judge overseeing its Chapter 11 proceedings. A hearing is scheduled for July 9, as the carmaker is in a hurry to have it approved by July 12. According to the court filing, Fisker has no obligation to offer repairs or maintenance for the vehicles sold to American Lease.
Instead, Fisker agreed to provide the lease company with "all relevant source code or other proprietary software operating elements, as well as existing developer work." This suggests that American Lease might support Fisker Ocean vehicle software, which could be good news for existing owners. However, this doesn't clarify how it will be able to repair the vehicles, considering the lack of replacement parts.
However, Fisker ultimately failed its customers, selling them poorly built vehicles that suffered from countless issues. It's impossible to survive when you fail your customers, and Fisker learned this the hard way. The startup couldn't sell half of the EVs it built in 2024. With massive debt and very little chances to find new buyers for its failed vehicles, Fisker filed for bankruptcy protection on June 17. Many companies use this form of protection to reorganize and start fresh, but for Fisker, this is only a preliminary step toward Chapter 7.
The startup is already liquidating assets, including 3,231 vehicles in the inventory, to fund vital expenses such as payroll and taxes. The Fisker Ocean used to sell for upwards of $70,000 in its heydays, but now people turn away even when priced at $25,000. There is no warranty, no service assistance, and no replacement parts should the cars ever need them (and, boy, they do, as many Ocean owners found out).
In a previous article, I assumed anyone buying an Ocean would risk writing off their investment. That included American Lease, a supplier of leased cars to Uber and Lyft drivers in New York City. American Lease was rumored to buy Fisker inventory in bulk when the startup filed for bankruptcy in June. However, even the worst cars can be a great deal if you get them for nothing. And that's the deal American Lease got from Fisker. The startup got rid of all the remaining 3,231 Ocean EVs for about $46 million.
This resulted in a median price of $14,240, which already sounds crazy for what once was a luxury electric vehicle. However, some damaged cars were sold for much less, starting at $2,500. Others previously titled but otherwise in perfect condition were priced at $3,200. The top $16,500 price was paid for 2,711 new vehicles in "good working order," which is still a pretty good deal.
Just because Fisker and American Lease agreed to the deal, it doesn't mean it would go through. First, the agreement must be approved by the bankruptcy judge overseeing its Chapter 11 proceedings. A hearing is scheduled for July 9, as the carmaker is in a hurry to have it approved by July 12. According to the court filing, Fisker has no obligation to offer repairs or maintenance for the vehicles sold to American Lease.
Instead, Fisker agreed to provide the lease company with "all relevant source code or other proprietary software operating elements, as well as existing developer work." This suggests that American Lease might support Fisker Ocean vehicle software, which could be good news for existing owners. However, this doesn't clarify how it will be able to repair the vehicles, considering the lack of replacement parts.
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