Fisker Inc. (NYSE:FSR) has announced an immediate price reduction for its top-of-the-range electric SUV, the Fisker Ocean Extreme, in both the U.S. and Canada. In the U.S., the Ocean Extreme's price dropped by $7,500 to $61,499, while in Canada, the new price stands at $79,799 CAD, a reduction of $10,200 CAD from the initial $89,999 CAD. Notably, this price cut extends to customers who have already purchased or ordered an Ocean Extreme.
The Ocean Extreme features a 113 kWh battery pack (106 kWh usable), which provides an EPA range of 579 km. Fisker's share price has experienced a 21% slump this year according to InvestingPro data, yet Chairman and CEO Henrik Fisker remains optimistic about demand for the model.
On November 6, Fisker will begin accepting orders for all trim levels of the Ocean model for 2024. This includes the Sport and Ultra models which are expected to see a price increase. The Ultra will be priced at $67,999 CAD (a rise from $63,999 CAD) and the Sport model will cost $45,999 CAD (up from $43,999 CAD). The current pricing for these models will remain for orders completed by November 5, 2023.
The Fisker Ocean Ultra has surpassed Fisker's EPA range estimates, achieving an official EPA estimated range of 563 km. Given the high demand for the Ocean model, Henrik Fisker anticipates that sales of the Sport and Ultra models will dominate from 2024 onwards.
Even with the recent share price slump and pricing adjustments, Fisker Inc. maintains a Moderate Buy consensus rating with an FSR price target of $9.25, implying a potential 70% upside. It's worth noting that Fisker's market cap stands at $5320M USD as per InvestingPro data, and the company has a P/E ratio of 18.94. The company's revenue growth for Q2 2023 was 18.61%, and the quarterly growth was 21.9%.
According to InvestingPro Tips, Fisker has seen a declining trend in earnings per share, but it significantly rewards its shareholders through dividends. The company's stock generally trades with low price volatility, and it has maintained dividend payments for 10 consecutive years. This information could be useful for prospective investors looking to understand the company's performance better.
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