NEW YORK: Fisker (FSR.N) cut prices of its high-end Ocean Extreme SUV on Monday, while raising prices on two lower-priced variants, as the firm grapples with a slowdown in electric-vehicle demand and a price war started by dominant player Tesla (TSLA.O).
The Ocean Extreme will now be about 11% cheaper in the U.S. at $61,499, while its Canada price has been reduced by approximately the same percentage to C$79,799 ($58,166.78). The starting price of the Tesla Model Y in the United States is $48,490.
"It is essential Fisker responds to competitive realities in the rapidly growing EV market," CEO Henrik Fisker said.
EV startups have borne the brunt of a price war started by Tesla to solidify its foothold in the competitive market in the face of rising borrowing costs and sticky inflation.
Fisker said it was also raising prices for the lower-end Ocean Ultra and Sport models in the U.S. by 6% and 4% to $52,999 and $38,999, respectively. The vehicles will see a similar price increase in Canada.
Customers who have already ordered or purchased an Ocean Extreme will receive a $7,500 price adjustment in the U.S. and a C$10,200 adjustment in Canada, even if their vehicle has gone to production, the company added.
Luxury electric-vehicle maker Lucid Group (LCID.O) had earlier this month launched a cheaper, rear-wheel drive version of the Air Pure sedan starting at $77,400, hoping to drive up demand.