Wow: Electric Vehicle’s Value Depreciates 70 Percent in Just 2 Months

PH888 /
PH888 /

Out of the many hundreds of reasons to never buy an electric vehicle, here’s another one. The car review website Edmunds just purchased a brand new Fisker Ocean Extreme electric SUV in January 2024. They bought it for their long-term test fleet. Within just two months, however, Fisker revealed that it was in serious financial trouble and slashed the prices of all its EVs. The damage was so bad that Edmunds took a huge bath on their shiny new electric SUV.

Edmunds paid $69,012 for the loaded Fisker Ocean Extreme. At the time—in January—Fisker was promising lots of over-the-air upgrades for the Ocean Extreme as well.

At the end of March, Fisker shocked everyone with the announcement that the company was experiencing extreme financial woes. Fisker is floating the possibility of bankruptcy since subsidies from the Biden regime were the only thing holding the company up at this point. They’re also drastically slashing the price of their Ocean EVs to try to quickly boost cash flow.

Edmunds decided to take their brand-new Ocean to CarMax and have it reassessed. The car is two months old and has only 4,220 miles on the odometer. The appraisal came back, and the car is now worth a jaw-dropping $21,000. Edmunds took a $48,012 bath on the car. It depreciated by 69.6% in just two months.

Every new car depreciates, obviously. That’s nothing new. As a rule of thumb, a new car loses about 20% of its value the first year and about 15% of its value every year after that. The Fisker Ocean EV just lost five years’ worth of value in two months.

The price of a Fisker Ocean may suddenly look very attractive, but you’d have to be a fool to purchase one at this point. If Fisker goes under, owners may not even be able to get their vehicles repaired when they inevitably break down.