Fisker Inc. (NYSE: FSR) (“Fisker”) – Passionate Creator of the World’s Most Sustainable Electric Vehicles and Advanced Mobility Solutions – Unveils Process to Qualify U.S.-Based Reservation Holders of Fisker All-Electric SUV Ocean to retain access to the existing federal tax credit. The current $7,500 tax credit would not be available if Congress passes the Cut Inflation Act of 2022 and President Biden signs the legislation.
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Fisker Inc. – passionate creator of the world’s most sustainable electric vehicles and advanced mobility solutions – unveils a process to qualify U.S.-based reservation holders of the all-electric Fisker Ocean SUV to retain access to credit existing federal tax. The current $7,500 tax credit would not be available if Congress passes the Cut Inflation Act of 2022 and President Biden signs the legislation. (Photo credit: Fisker)
Eligible reservation holders in the United States are eligible for a $7,500 tax credit under current law, but the proposed legislation, as currently written, would make the Austrian-built Fisker Ocean , ineligible. In addition, the bill also imposes a household income cap of $150,000 for single filers and $300,000 for couples filing jointly. However, Fisker believes customers can retain their eligibility for the full $7,500 credit for the 2022 tax year by converting their existing reservations into a binding sales contract for the purchase of the Fisker Ocean.1
“Many of our reservation holders look forward to the tax benefits of purchasing an electric vehicle. Therefore, we have acted quickly and proactively to protect access to existing tax credits for eligible purchasers of Fisker Ocean if the Cut Inflation Act becomes law.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, the Carbon Neutral Factory. carbon from Magna in Graz, Austria,” said CEO Henrik Fisker.
“Our reservation holders have given us a vote of confidence, with 5,000 of them recently committing $5,000* each to a Fisker Ocean One launch vehicle,” he added. “So we have to do this work on their behalf to show that we have their best interests at heart.”
Fisker does not request additional payments from reservation holders, but rather converts the existing $250 for the first reservation and $100 for the second reservation deposits into non-refundable orders. This ordering system remains in effect until the Inflation Reduction Act is passed and enacted. At that time, this order process will be closed.
In the US, the Fisker Ocean starts at $37,4992 in the Sports database. The Ultra trim sells for $49,9992 and the top Extreme version is priced at $68,9992. The five-seat SUV is designed and manufactured in Manhattan Beach, California.
On August 3, 2022, Fisker reaffirmed its production start date for November 17, 2022 and its 2023 production plans of 40,000 to 50,000 Fisker Ocean units, aligned with the company’s financial strategy and schedule. Fisker’s asset-light foundation delivers advantages of scale and speed to market while dramatically reducing the complexities, risks and fixed costs of a fully integrated approach. Additionally, the company is focused on maintaining a strong liquidity profile and a conservative capital structure.3
About Fisker Inc.
California-based Fisker Inc. is revolutionizing the automotive industry by developing the most emotionally desirable and environmentally friendly electric vehicles on Earth. Passionate about the vision of a clean future for all, the company is on a mission to become the leading provider of electric mobility services with the most sustainable vehicles in the world. To learn more, visit www.FiskerInc.com – and enjoy exclusive content on Fisker’s social networks: Facebook, Instagram, Twitter, YouTube, and LinkedIn.
Download the revolutionary new Fisker mobile app from the App+Store or Google+Play Store.
This press release contains forward-looking statements, which are subject to the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “felt”, “believes” , expects, “estimates”, “projects”, “intent”, “should”, “shall be”, or the negative form of these terms, or other comparable terminology and include, among other things, the possibility that the Inflation Reduction Act be signed into law; the possibility of tax credits being available in the future, quotes from our CEO, statements regarding the expected launch schedule, pricing and estimated lineup of the Fisker Ocean, future company performance and others future events that involve risks and uncertainties. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein due to numerous factors. rs, including but not limited to: Fisker’s limited operating history; Fisker’s ability to enter into additional manufacturing and other contracts with Magna or Tier 1 suppliers to execute its business plan; the risk that OEMs and supplier partners may not meet agreed deadlines or experience capacity constraints; Fisker may experience significant delays in the design, manufacturing, regulatory approval, launch and financing of its vehicles; Fisker’s ability to execute its business model, including market acceptance of its planned products and services; Fisker’s inability to retain key personnel and hire additional personnel; competition in the electric vehicle market; Fisker’s inability to develop a sales distribution network; and the ability to protect its intellectual property rights; and the factors discussed in Fisker’s Annual Report on Form 10-K, under the heading “Risk Factors”, filed with the Securities and Exchange Commission (the “SEC”), supplemented by the Quarterly Reports on Form 10-Q , and other reports and documents Fisker files from time to time with the SEC. All forward-looking statements speak only as of the date they are made, and Fisker undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.
*or equivalent in foreign currency
1 Please note that Fisker does not provide legal or tax advice regarding the provisions of the Cut Inflation Act, including its “Transition Rule”, which in its August 6, 2022 draft form provided that a taxpayer who entered into a binding written contract for a qualifying vehicle prior to its enactment, and takes delivery of that vehicle after the Inflation Reduction Act is enacted, may elect to treat the vehicle as having been put into service on the day preceding the enactment of the Inflation Reduction Act for the purposes of Section 30D(d)(1) of the Internal Revenue Code of 1986. Reservation holders should consult a tax practitioner to determine eligibility for any federal tax credit and not rely on such a tax credit when making a purchase decision.
2 Prices shown are for the continental United States and exclude delivery, finance and government charges. Maintenance is not included. Pricing depends on specifications and options chosen by customers when configuring the actual vehicle closer to production. Prize does not include various state and federal incentives and benefits that may be available. Price listed is for base Ocean trim selection, including Great White exterior, Black Abyss interior and 20-inch F7 AeroStealth wheel selections.
3 Accordingly, Fisker has filed a $2 billion Form S-3 shelf registration statement, which was declared effective by the Securities and Exchange Commission on January 4, 2022, which permits the issuance of equity securities and debt from time to time. On May 24, 2022, under this shelf, Fisker put a $350 million equity program into the market.
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