Fisker appears to be on the brink of bankruptcy, and in an attempt to help stay afloat slashed prices on its Ocean SUV last week. That was apparently not enough to retain orders as more than 40,000 reservations have been canceled.
Fisker is in more trouble as internal marketing data reportedly shows customers have canceled more than 40,000 out of 70,000 reservations, according to data obtained by Business Insider. This comes despite the recent slash in prices.
The reservations each put $250 in Fisker’s pocket. The struggling automaker will now return it in more than 40,000 places, minus a $25 processing fee, or up to $9 million in total. However, customers making a second Ocean reservation only needed to put up $100, but it is not clear what the percentage of repeat orders is.
Fisker has been in the news for the wrong reasons lately, so it is not surprising that customers are having second thoughts about their reservations. The car itself got a scathing review from influential YouTuber MKBHD, who slammed it as the worst car he had ever reviewed.
The Fisker Ocean is on its third NHTSA investigation after customers made 14 complaints about the malfunctioning doors. The other probes were over brake failure incidents and unintended motion causing the car to roll away.
The company has been delisted from the stock exchange and may be on the brink of bankruptcy.
