More than 40,000 customers are reportedly canceling their Fisker Ocean reservations

Fisherman persistent financial problems have reportedly turned off a significant number of buyers who had pre-ordered the electric ones Ocean crossover with a refundable deposit. According to a recent report, the company has lost more than 40,000 reservations that it must refund.

Citing leaked data and internal statistics: Business insider wrote that Fisker received between 70 and 80 cancellations per day “on a recent seven-day average.” The total number of canceled reservations exceeds 40,000, the report said, which represents a large portion of the reported 70,000-plus reservations the company has collected since it opened its order book in November 2019. Fisker did not comment on the report.

If true, the cancellations exacerbate Fisker’s problems in several ways. Firstly, the brand’s sales forecast has apparently fallen by more than 50%, meaning that its revenue forecast has inevitably fallen by the same figure. This comes at a time when Fisker needs to generate more revenue to stay afloat; It recently stopped production of the Ocean to save money, and it has a huge inventory of unsold cars.

Second, Fisker will have to refund the deposit it collects to any reservation holder who cancels Business insider And the brand’s general terms and conditions. It costs $250 to reserve one copy of Ocean and $100 for each additional reservation; both amounts are refundable. However, Fisker will retain the $25 processing fee added to each reservation. The publication estimates that Fisker owes its customer base approximately $9 million. It adds that “a few thousand” customers have individually canceled orders, although the $5,000 deposit is not fully refundable.

It’s not far-fetched to assume that some customers who reportedly canceled a reservation realized they could immediately get a new Ocean for much cheaper than initially advertised — Fisker lowered the price of the remaining 2023 models by up to $24,000 by March 2024 to reduce the stock of unsold cars and generate cash. Other customers may simply have lost confidence in a company on the brink of bankruptcy.

Although the Ocean, which is built by Magna in Austria, is the only Fisker model to enter production, the company has shown off three other models electric cars that it began to take reservations and apparently intended to build sooner or later. There’s a pickup called Alaska, a city car called PEAR, and a four-door convertible known as the Ronin. The company’s website says buyers can reserve an Alaska or a PEAR for $250, or spend $2,000 to reserve a Ronin. As of February 2023, the brand claimed to have received approximately 5,600 pre-orders for the PEAR. Whether these still hold up remains up in the air, but paying them back will further worsen the company’s financial prospects.

We’ve reached out to Fisker for more details and will update this story when we know more.

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