Price Cut Strategy On High-End Trim Of Fisker Ocean Is Working, Says Fisker CEO
Portfolio Pulse from Anan Ashraf
Fisker Inc (NYSE:FSR) CEO Henrik Fisker reported that the company's revised pricing strategy for the high-end trim of its Ocean SUV is effective, with increased consumer interest in the Extreme trim following a price cut. Fisker lowered the price of the Ocean Extreme by $7,500 to $61,499, while raising prices for the Ultra and Sport trims. Despite not qualifying for the IRA tax discount, Fisker sees strong demand in the U.S. and competitive pricing in Europe due to lower logistics costs. The company reported Q3 revenue of $71.8 million and a reduced loss per share of 27 cents. However, Fisker has lowered its 2023 production forecast to 13,000-17,000 vehicles from the previous estimate of 20,000-23,000.

November 14, 2023 | 8:45 am
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POSITIVE IMPACT
Fisker Inc's revised pricing strategy is showing positive results with increased interest in the Ocean Extreme trim. The company reported higher Q3 revenue and a smaller loss per share, but lowered its 2023 production outlook.
The positive reception of Fisker's pricing strategy and the reported increase in revenue are likely to be viewed favorably by investors, potentially leading to a short-term increase in stock price. However, the lowered production forecast for 2023 could temper some of the optimism, but the overall tone of the news seems positive.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100