Fisker Seeks Approval to Sell 3,321 Ocean Electric SUVs Amid Bankruptcy Proceedings

Fisker Seeks Approval to Sell 3,321 Ocean Electric SUVs Amid Bankruptcy Proceedings

Key Points:

  • Fisker has asked for a bankruptcy judge’s approval to sell 3,321 Ocean electric SUVs to American Lease for $46.25 million.
  • The EV startup filed for Chapter 11 bankruptcy last month, facing logistics issues and significant cash depletion.
  • Fisker reduced prices of some Ocean SUV variants from around $70,000 to approximately $25,000 to raise capital.
  • American Lease expanded its offer to purchase all 3,321 vehicles to support the city’s mandate for a zero-emission rideshare fleet by 2030.

Fisker Inc. has requested a bankruptcy judge’s approval to sell more than 3,000 Ocean electric SUVs from its inventory to a vehicle-leasing company at approximately $14,000 per vehicle. If approved, Fisker will offload 3,321 electric vehicles to New York-based American Lease for $46.25 million, according to a court filing on Tuesday.

The electric vehicle (EV) startup, which sought Chapter 11 bankruptcy protection last month, has struggled with logistics issues while selling its Ocean electric SUVs. Fisker transitioned to a dealer-partner model earlier this year after depleting significant cash.

Some variants of the Ocean SUV were initially priced around $70,000. However, as the company edged closer to bankruptcy, it slashed the prices of the cheapest variant to about $25,000 to generate capital to meet its debt obligations.

On May 30, just two weeks before Fisker filed for Chapter 11 bankruptcy, American Lease agreed to purchase 2,100 Ocean EVs. A month later, American Lease expanded its offer to buy all 3,321 Oceans ready for sale. This bulk purchase agreement allows Fisker to liquidate its inventory and raise much-needed funds during its bankruptcy proceedings.

American Lease is a vehicle leasing company that serves rideshare drivers in and around New York City. The company offers these drivers a fleet of cars for lease or rent. Last year, New York City mandated the transition of the city’s rideshare fleet to either zero-emission vehicles or wheelchair-accessible vehicles by 2030. This requirement aligns with American Lease’s acquisition of Fisker’s Ocean EVs, as the company aims to support the transition to a greener transportation system.

The court’s approval of the sale will be a significant step for Fisker as it navigates its financial restructuring. Fisker can generate immediate cash flow by offloading the electric SUVs to address its financial obligations. The sale also underscores the growing demand for zero-emission vehicles in the rideshare industry, driven by regulatory changes and a shift towards sustainable transportation solutions.

TechGolly editorial team led by Al Mahmud Al Mamun. He worked as an Editor-in-Chief at a world-leading professional research Magazine. Rasel Hossain and Enamul Kabir are supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial knowledge and background in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.

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