Bonfire Of The E-Vanities: Bankrupt EV Start-Up Fire-Selling Remaining Inventory

[Hoodat]

Bonfire Of The E-Vanities: Bankrupt EV Start-Up Fire-Selling Remaining Inventory

David Blackmon  •  Jul. 10, 2024  •  12:56 PM ET

Hey, want a cheap Fisker Ocean EV? Want a bunch of them? All you need is $2,500 in cash for a few hundred of Fisker’s remaining inventory of damaged Ocean SUVs, and they are yours!

Bankrupt pure-play battery electric-vehicle maker Fisker, desperate to raise cash to keep what remains of its operations open as it goes through the Chapter 11 bankruptcy process, is about to enter into a deal with a wholesale buyer to dump its remaining inventory of what is a really good-looking, high-quality SUV, designed to compete with the Tesla Model-Y sort-of SUV car that is really just a souped-up sedan.

You may remember that, earlier in the year, Fisker cut the price for the Ocean by 40% from its original $58,000 price tag to try to spur sales amid a faltering market. But even at $36,000 or so, the carmaker was unable to offload enough of the things to avoid bankruptcy.

So, now, according to Inside EVs, Fisker is about to do a deal with American Lease to sell undamaged models for $16,500, previously owned but undamaged units for $3,200, and the damaged units for just $2,500. Fisker is willing to enter into the deal to raise $46.25 million to help pay off its massive debts.

Fisker says in court documents it has 2,711 undamaged models on hand, which it describes as being in “reasonably good working order” and having a “Manufacturer’s Certificate of Origin.” Those are the units that fetched the highest price from American Lease. An inventory of 3,211 “previously titled” vehicles obtained the $3,200 price with the remainder being basically sold for parts value.

This move by Fisker is reflective of several features of the currently failing U.S. EV market:

• Surveys continue to show that the vast majority of U.S. car buyers will not purchase an EV even at bargain basement prices discounted 40% off of retail.
• The overall growth in EV sales in the U.S. has slowed to a trickle, just as is happening in the UK and EU now.
• The market for used EVs is near zero.
• The EV industry in the U.S., whose beginnings can be traced back to 1886, still has failed to solve the same infrastructure and technology issues that have plagued it since the start.  .
   .

https://dailycallernewsfoundation.org/2024/07/10/david-blackmon-bonfire-of-the-e-vanities-bankrupt-ev-start-up-fire-selling-remaining-inventory/

[Bigun]

 

[banddag]

The overall growth in EV sales in the U.S. has slowed to a trickle, just as is happening in the UK and EU now.[/li][/list]

Record Ev sales 2nd quarter 2024 from nearly every EV company. Tesla was down slightly from 1st quarter but they still beat Wall Street estimates.
Ford, GM, Toyota, Rivian, Nissan, Hyundai, Kia, BMW, Subaru had their greatest sales EV ever 2nd quarter. Mercedes and Vw are down

918,000 ev's sold 2022, 1.6 million 2023 and 2.0-2.3 million expected 2024.

Gm/Tesla admitted they made mistakes. GM/Ford brought out a pickup too early and they were jokes-too short of range and too expensive, Musk said Tesla concentrated too much on the upper end segment instead of cheaper cars

I just came back from  a road trip through 3 states.  Roadside rest are shut down and adding ev chargers. Roadside rest near me om I-70 closed down adding 20-25 chargers each side of the highway

All the car companies are coming out with smaller, cheaper, longer range ev's in 2025/2026 that people can afford. The industry is finding it's footing.

Ev sales Q1 and Q2  2024 have broke records.
From Marketwatch.com:
Electric car sales have taken off in the U.S. since 2020. About 1.6 million EVs were sold in the U.S. in 2023 — a 60% increase from the 1 million sold nationwide in 2022. The U.S. accounted for 9.7% of all new EV registrations worldwide in 2022. Globally, EV sales topped 10 million for the first time in 2022. In the first quarter of 2023, over 2.3 million electric vehicles were sold worldwide, a roughly 25% year-over-year increase.

[Hoodat]

Record Ev sales 2nd quarter 2024 from nearly every EV company.

Thanks to price cuts, government subsidies, tax credits, and phenomenal lease deals, just to get rid of them.  If automakers started offering ICE-powered cars for $10-20k below cost, they would sell a lot more of them  as well.

[Bigun]

Thanks to price cuts, government subsidies, tax credits, and phenomenal lease deals, just to get rid of them.  If automakers started offering ICE-powered cars for $10-20k below cost, they would sell a lot more of them  as well.

I'll bet they are selling like hotcakes all over SE Texas right now! /S

[Smokin Joe]

Doesn't matter how cheap it is if it won't work for you. In the end, most taxpayers will end up shelling out bank for a few, just so they can charge their batteries, and paying fuel taxes to keep the roads whole, too.