Fisker casts its net far and wide with various price points to catch as many consumers interested in buying a new electric vehicle.
Fisker is entering the market this November with a solid pricing strategy. The company will have a wide range of pricing for their flagship vehicle, the Fisker Ocean. This gives them an advantage over competition and increased revenue potential.
Their wide range of pricing enables them to tap into the massive worldwide SUV market, which is the fastest growing car segment on the planet. According to CarsDirect, the average cost of an SUV in the United States as of 2022 is $35,000. Fisker has made their lowest trim model start at $37,499 USD.
In the United States, you will receive a government tax credit of $7,500 after the purchase of a Fisker Ocean. Therefore, excluding other feature upgrades and optional packages, the cost is $29,999, far below the average cost of SUVs in the US.
Fisker has worked with its suppliers and designed the car to maintain a very affordable price for their all-electric SUV. Especially, with the features they have announced it is practically unheard of in the EV market.
Not all EVs are out of reach
Right now, electric vehicles are very expensive. New start ups like Rivian and Lucid Motors are selling their least expensive vehicles for $70,000 USD.
The EV giant Tesla has a grasp on the majority of EV market share. They sell their cheapest SUV, the base Model Y, as of June 1, 2022 for $62,990. That is Tesla’s least expensive version of the Model Y. This is before adding any other feature upgrades to the vehicle and it’s still over $60,000 USD.
Fisker should have no problem selling their all-electric SUV. The highly aesthetic design and the entry trim priced at $37,499 USD, the Fisker Ocean is an attractive choice. Not to mention, the least expensive Fisker Ocean comes with a range of 250 miles and many other unique features. With a possible recession on the horizon, offering a well-equipped electric vehicle at a competitive price is key.
Competitive price range
Fisker includes two all-wheel drive trim models, the Ultra ($49,999 USD) and the Extreme ($68,999 USD). These trim levels are packed with a vast number of features.
The Extreme is packed with some impressive segment leading features. The SUV can reach 0-60 in under 4 seconds. It has a SolarSky Roof, which generates and extra 1,500 to 2,000 miles per year in sunny conditions. California Mode and the Revolve screen are innovative too.
The Ocean Extreme has a range of 350 miles, whereas the Ultra has a range of 340 miles. The Ultra has a longer range than the Tesla Model Y long range by 10 miles. It also costs $10,000 USD less before applying government tax credit. With the tax credit applied, the Fisker Ocean Ultra is $17,500 cheaper than the Tesla Model Y. The Fisker Ocean is competitively priced even when comparing it to legacy ICE (internal combustion engine) SUVs.
Wide range of pricing
By Fisker having a wide range of pricing along with an affordable entry model, the Fisker Ocean Sport ($37,499), it will allow them to reach a very large percentage of the population.
Fisker’s pricing strategy undercuts the majority of EVs built by legacy automakers. For example, the price of the Fisker Ocean is much more competitive than the Ford Mustang Mach-E, Kia EV6, Hyundai IONIQ 5, Audi Q4 E-Tron, Nissan Ariya, Volkswagen ID.4, and many more.
As shown in the chart above, Fisker Ocean on a price and range comparison basis comes close to beating the majority of competition out there. If the price and range isn’t enough for you, well, the design of the car is quite aesthetically pleasing with its flowing design from front to back.
With Fisker manufacturing higher priced trim models along with the entry level Ocean Sport, it enables the company to please people who want to spend more on an EV that is packed with features. In return, this helps maximize their profits. The Extreme trim will be the most profitable EV for the company. Also, Henrik Fisker has said the average selling price of all trims will come in around $55,000 USD.
The proof is in the pudding
This competitive advantage of Fisker Ocean pricing can be displayed through the company’s skyrocketing reservation numbers. For instance, as of May 2022, Fisker has announced over 45,000 reservations. The rate at which reservations are increasing is up 400% YTD as compared to 2021. According to the company, they are already sold out through much of 2023. That’s if they can convert each reservation holder to an owner.
With all of these reservations, the company will start taking pre-orders for the high-end limited edition Fisker Ocean One trim on July 1, 2022. Start of production for the Ocean One is on target for November 2022. During 2023, the first full year of production, the company will begin producing the Extreme ($68,999), followed by the Ultra ($49,999) and Sport ($37,499) after it delivers all 5,000 Ocean One orders.
As you can see, Fisker’s pricing strategy is resonating with the consumers. The Fisker brand is gaining much traction from their marketing campaign and through word-of-mouth. If you haven’t already done so, reserving a Fisker Ocean only requires a $250 deposit. You can reserve a Fisker Ocean directly from the company’s site and become a part of the Fisker family.
This guest blog post is written by Connor S. He is an economics and environmental studies double major at the University of Connecticut, is a Fisker Ocean reservation holder, and holds a long position in Fisker shares.
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