(Reuters) – Electric vehicle startup Fisker (NYSE:) said on Wednesday it was cutting prices on its Ocean electric SUV, signaling the cash-strapped firm’s attempt to boost demand and ease concerns about its uncertain future.
The company said it would cut the price of the top-end version of the car, called “Extreme”, by about 39%, or from $24,000, to $37,499.
Fisker said other variants of the Ocean SUV will be much cheaper to position the company as “a more affordable and attractive choice of electric vehicles.”
News of the price cut comes days after Fisker’s negotiations with the major automaker for a deal fell apart, sending the company’s shares tumbling and prompting the New York Stock Exchange to delist the shares.
The price declines signal Fisker’s attempt to raise more funds to meet its required debt obligations as the company faces a potential default.
The end of talks with the unnamed automaker prompted Fisker to explore strategic options, including in-court or out-of-court restructuring and capital markets deals, the startup previously said.
The Fisker Ocean competes with Tesla’s (NASDAQ:) Model Y SUV and a growing crowd of electric midsize SUVs like the Ford (NYSE:) Mustang Mach-E.