Fisker (NYSE:FSR) has made adjustments to its pricing strategy in response to a slowdown in electric vehicle (EV) demand and increasing competition, particularly from industry giant Tesla (NASDAQ:TSLA). The company has reduced prices for its high-end Ocean Extreme SUV while raising prices on two lower-priced variants.
The Ocean Extreme SUV will now be approximately 11% cheaper in the U.S., with a new price of $61,499, and a similar percentage reduction has been applied to its Canadian price, which is now C$79,799 (approximately $58,166.78). For context, the starting price of Tesla’s Model Y in the United States is $48,490.
Fisker’s CEO, Henrik Fisker, emphasized the importance of responding to competitive pressures in the rapidly growing EV market, acknowledging the need to adapt to changing market dynamics.
The price reductions come as EV startups have been grappling with a price war initiated by Tesla. This pricing strategy by Tesla has been aimed at solidifying its position in the fiercely competitive EV market, particularly in the face of rising borrowing costs and persistent inflationary pressures.
Fisker has also chosen to increase the prices of its lower-end Ocean Ultra and Sport models in the U.S., with hikes of 6% and 4%, resulting in new prices of $52,999 and $38,999, respectively. Similar price increases will be applied to these models in Canada as well.
The company has also shown goodwill towards existing customers who have ordered or purchased the Ocean Extreme SUV. Regardless of the production status of their vehicle, these customers will receive price adjustments of $7,500 in the U.S. and C$10,200 in Canada, reflecting Fisker’s commitment to customer satisfaction.
Meanwhile, in a bid to stimulate demand, luxury EV manufacturer Lucid Group (NASDAQ:LCID) introduced a more affordable, rear-wheel-drive version of its Air Pure sedan, priced starting at $77,400. This move is part of Lucid’s strategy to capture a broader market segment and expand its market presence.
Featured Image: Megapixl
Author Faith Yakubu 
