Fisker aims to sell its remaining 3,321 Ocean electric SUVs in bulk to a New York-based leasing company, according to a new filing with the US Bankruptcy Court for the District of Delaware.
Fisker to sell remaining Ocean inventory in bulk
Fisker is reportedly seeking to offload the remaining 3,321 Ocean electric SUVs in a $46.25 million bulk deal with American Lease amid the ongoing bankruptcy proceedings.
If the deal pushes through, American Lease’s ride-share fleet will gain an additional 3,231 Ocean SUVs for only up to $46.25 million. It is indeed quite a deal, considering the original high-end price of the Fisker Ocean.
Pricing
American Lease agreed to buy the remaining Fisker Ocean SUVs for between $2,500 and $16,500 per unit, depending on their condition.
The $46.25 million total equates to approximately $14,400 per unit on average. According to Fisker, it currently has 2,711 Ocean SUVs in “Good Working Order,” which will secure the highest $16,500 price.
Previously titled units will cost $3,200, while the most damaged units requiring cosmetic or mechanical repairs will cost $2,500.
This price range indicates a significant decline from the Fisker Ocean SUV’s original manufacturer’s suggested retail price (MSRP). For instance, the top-tier variant Ocean Extreme originally had a base price of $61,499. It can further increase to over $70,000 when fully optioned out.
Fisker announced price cuts of up to $24,000 in March. However, the cuts have not been sufficient to save the company, prompting it to file for Chapter 11 bankruptcy protection in June.
Bankruptcy court to decide fate of deal
In the meantime, Fisker has not yet commented on the bulk sale matter apart from the filing itself.
In the July 2 motion, the American EV startup indicated that the company cannot fund crucial business expenses such as payroll, taxes, and software provider costs if the US Bankruptcy Court for the District of Delaware denies the sale request by July 12.
Fisker plans to allocate the potential proceeds to paying storage facilities holding the Ocean SUVs for about $1.5 million, while the remaining will ensure the company’s operation as it strives to restructure. It is currently subjected to significant debt nearing $1 billion, including $190 million to its biggest secured creditor, Heights Capital Management.
The bulk sale deal is subject to court approval, with the results of the upcoming July 9 hearing being extremely crucial for the American startup.
