The EV maker Fisker announced on Sunday a process for qualifying US-based reservation holders of its first model Fisker Ocean to secure the federal tax credit by converting their reservations into a binding sales contract for the purchase of the Fisker Ocean.
Qualifying reservation holders in the United States are eligible for a $7,500 tax credit under existing law, but the proposed legislation, as currently drafted, would make the Fisker Ocean, built in Austria, ineligible — Fisker waned.
This ordering system remains in effect until the Inflation Reduction Act is passed and signed into law. At that time, this order process will close”, Fisker added.
“Many of our reservation holders are looking forward to the tax advantages of purchasing an electric vehicle. Therefore, we acted swiftly and proactively to protect access to existing tax credits for qualifying Fisker Ocean buyers should the Inflation Reduction Act become law,” CEO Henrik Fisker said.
“We are focused on a clean future for all, so we are building the Fisker Ocean in one of the world’s most sustainable production facilities, Magna’s carbon-neutral factory in Graz, Austria,” he added.
“Our reservation holders have given us a vote of confidence, with 5,000 recently committing $5,000 each to secure a Fisker Ocean One launch edition vehicle,” he added. “So, we need to do this work on their behalf to show that we have their best interests at heart.”
Earlier this week, Morgan Stanley analyst Adam Jonas lowered the firm’s price target on Fisker shares from $15 to $10 while downgrading the rating from Overweight to Equalweight. The downgrade comes a couple of days after the earnings results from the EV maker.
On Wednesday, Fisker reported its second quarter earnings results where it confirmed the sold-out of the 5,000 units special units for the Ocean model amid a non-refundable $5,000 reservation.
The company said it has over $850 million of cash and cash equivalents reflecting its “prudent liquidity management and is sufficient to fund the production launch of the Fisker Ocean in November 2022 and for additional vehicle development throughout 2022”.
On Monday, Fisker CEO unveiled that the upcoming Ocean Model will bring streaming apps like Youtube, Disney+, and Amazon Prime Video but also the web browser Google Chrome.
Recently, the company said the model will be showcased on Pebble Beach Automotive Week at Pebble Beach Concours d’Elegance from August 18 — 21. The pure electric SUV model made its European public debut in late February at Mobile World Congress in Barcelona (Spain) and starts at $37,499 for the Sport trim version.