Over 40,000 customers reportedly cancel their Fisker Ocean reservation

Over 40,000 customers reportedly cancel their Fisker Ocean reservation

Fisker's ongoing financial troubles have reportedly scared off a substantial number of the buyers who reserved the electric Ocean crossover with a refundable deposit. The company has lost more than 40,000 reservations that it will need to reimburse, according to a recent report.

Citing leaked data and internal metrics, Business Insider wrote that Fisker received between 70 and 80 cancellations per day "in a recent seven-day average." The total number of canceled reservations stands at over 40,000, the report said, which represents a huge chunk of the reported 70,000-plus reservations the firm has collected since it opened the order book in November 2019. Fisker hasn't commented on the report.

If this is accurate, the cancellations compound Fisker's problems in several ways. First, the brand's sales forecast has seemingly fallen by over 50%, meaning its revenue forecast has inevitably dropped by the same number. This comes at a time Fisker needs to generate more sales in order to stay afloat; it recently paused production of the Ocean to save money, and it's sitting on a massive inventory of unsold cars.

Second, Fisker will need to refund the deposit it collected from every reservation holder who cancels, according to Business Insider and the brand's terms and conditions. It costs $250 to reserve one example of the Ocean and $100 for each additional reservation; both sums are refundable. Fisker keeps the $25 processing fee that's added to every reservation, however. The publication estimates Fisker owes its customer base about $9 million. It adds that "a few thousand" customers have separately canceled an order, though the $5,000 deposit on those isn't fully refundable.