After reaching 40,000 bookings for its Ocean SUV, Fisker Automotive said that it would “launch pre-order reservations for the limited-edition Fisker Ocean One, due to anticipated demand.” Henrik Fisker, the CEO of the company, stated later in the same press release that “Our goal is to be absolutely transparent with our customers. Because we don’t want reservation holders who have their hearts set on buying a Fisker Ocean One to be let down, we are giving them the chance to buy their car right now. Those who were looking forward to the opportunity to purchase an Ocean One would have been taken aback by the e-mail that Fisker sent out this week. However, they might not have been disappointed.
Fisker’s Ocean One SUV Requires a $5,000 Non-Refundable Deposit.
According to a report by Electrek, it has been discovered that the offer of “pre-order reservations” was actually a request to make a downpayment of $5,000 that was nonrefundable for an Ocean One. That is to say, this is not a reservation; rather, it is the beginning of the process of making a purchase, and if you change your mind, you will not receive your money back.
There are three points that need to be made crystal clear. To begin, this is only applicable to the one-of-a-kind, limited-edition Ocean One which costs $69,000. Shoppers who have already put down the required deposit of $250 for the serial manufacturing Ocean need not worry. Second, Fisker is not the only electric vehicle manufacturer to need a sizeable deposit in the four-figure range. When Lucid presented the production version of the Air, the company began accepting reservations for the vehicle at prices ranging from $300 to $7,50000, depending on the trim.
The most important distinction is, of course, that Lucid’s reservations were all subject to full refunds. Third, it’s not as if there aren’t hundreds of people purchasing cars without first physically inspecting them in today’s market. Customers who purchased a GMC Hummer EV or a Ford F-150 Lightning first reserved their vehicles then paid for them and then got a look at them. People are not only purchasing cars online without first physically inspecting them, but they are also traveling hundreds of miles to do it. This is due to the large number of people who are flipping cars as well as customers who are just attempting to get the new vehicle they desire.
Now that that’s out of the way, let’s assume that despite that, we continue to believe that this is a bold move on Fisker’s side. Even established manufacturers who have a century’s worth of production experience and gold-plated ties with their suppliers are unable to manufacture vehicles in a timely way. It is more likely that up-and-coming electric vehicle manufacturers such as Lucid and Rivian will announce reductions or delays in production than they will declare a production milestone.
As an illustration, Fisker intended for its contracted Ocean builder, Magna, to begin assembly-line production of the Ocean by the end of the previous year. Production is still on target to begin in November of this year, but every manufacturer has plans that will be disrupted once the supply chain and chip crisis hits. In light of the current state of the global industrial sector and Fisker’s checkered past, investing $5,000 in an Ocean makes the most sense as a tax write-off, and, hey, if and when a customer eventually gets an Ocean One, that’s a bonus.
In regard to the question of “when,” the letter mentioned that Fisker planned to have all Ocean Ones delivered by September 2023 at the latest. In an interview with Fiskerati, Henrik Fisker stated that the highest-end Extreme trim “would commence production alongside One.”
The list price for either of those two models is the same. After that, he stated that “manufacturing of the Ultra and the Sport will begin at the end of the third quarter of next year.” The firm stated that it did not anticipate having to raise prices over the entirety of the 2023 production, but it was unable to promise that the costs would remain stable for individuals who were coming in line after 40,000 reservations had been made.
The entry-level Sport has been moved to the end of the assembly queue, which is a usual strategy in this cash-hungry industry. As a result, price increases appear to be inevitable for customers who have not yet placed reservations. But before we worry about it, let’s first go to November and see what the month brings.