Fisker, a prominent partner of Foxconn in the EV sector, is taking steps to expedite production and deliveries of its first all-electric SUV, the “Fisker Ocean.” However, faced with slowing EV demand and the market leader Tesla initiating a price war, Fisker has joined the price reduction battle, announcing a cut in the price of their flagship model, the Ocean Extreme.

As reported by media outlets including Reuters, Fisker revealed price reductions in the U.S. market on October 23rd. The Ocean Extreme, previously priced at $68,999, has been lowered to $61,499, marking a $7,500 reduction. Customers who have already placed orders and existing owners are eligible for these reduced prices. In the Canadian market, the price has been lowered from $89,999 CAD to $79,799 CAD (approximately $58,169 USD), a reduction of $10,200 CAD.

In comparison, the Ocean Extreme competes with Tesla’s Model Y Performance, which is currently priced at $41,390 in the U.S.

Fisker’s CEO, Henrik Fisker, acknowledged the competitive nature of the rapidly growing EV market, stating, “Fisker must adapt to the realities of intensified competition in the rapidly growing EV market.”

As interest rates and inflation have both risen, impacting consumer willingness to make vehicle purchases, Tesla initiated a price reduction strategy to solidify its position as a leader in the EV industry. For EV startups that are relatively new to the market and smaller in scale, this competitive landscape can be particularly challenging.

Currently, the Fisker Ocean is available in three versions, including the base single-motor Sport, the mid-range dual-motor Ultra, and the top-tier Extreme, all featuring dual-motor all-wheel drive, with the Extreme version boasting an impressive 564 horsepower.

While Fisker has reduced the price of the Ocean Extreme, the company has simultaneously increased the prices of the lower-tier Sport and Ultra models in the U.S. market by 4% and 6%, respectively. The new prices for these models are $38,999 and $52,999, and similar price adjustments have been implemented in the Canadian market.