Fisker Stock Alert: NHTSA Opens Investigation Into Ocean SUVs

Fisker (OTCMKTS:FSRN) stock is in focus after the National Highway Traffic Safety Administration’s (NHTSA) Office of Defects Investigation (ODI) revealed that it had opened a preliminary evaluation (PE) into the Ocean SUV. A PE does not guarantee that the agency will take action. Fisker now has a total of three open PEs.

The recent PE was opened after the ODI received 14 complaints about the 2023 Ocean concerning faulty doors.

“The complaints allege an intermittent failure of the latch and handle preventing the opening of the driver, front passenger and/or rear doors. Some reports allege the inability to open the door from either the interior or exterior door handle, resulting in the need to use another door to egress,” wrote the ODI.

Fisker Receives Preliminary Evaluation for Faulty Doors

Fisker’s first PE, which was announced in January, involves partial braking loss on low traction or bumpy surfaces. The ODI received nine complaints for this issue.

Its second PE, announced in February, came after four complaints alleged the Ocean was subject to unintended vehicle movement. One of the complaints involved an alleged injury.

Besides these issues, Fisker has received a plethora of complaints about its software. These include issues related with its sensors, Bluetooth and key fob connectivity, audio system and battery life. Several of these issues were highlighted in Marques Brownlee’s review video of the Ocean titled “This is the Worst Car I’ve Ever Reviewed,” which currently has 5 million views.

According to Edmunds, the release of Ocean OS 2.0 has alleviated many of these issues, including features such as improved key fob connectivity, automatic vehicle hold and reduction of state-of-charge loss.

This comes following significant price cuts on all of the Ocean’s trims. The Extreme trim received the largest reduction of 39% to $37,499 while the Sport trim starts at just $24,999 following a 36% drop. Fisker enacted these discounts in order to clear its inventory. In 2023, the company produced 10,193 Oceans but only delivered 4,929 of them, or less than half of their annual production.

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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.