The Fisker Ocean crossover EV sent shockwaves at the recent Los Angeles Auto Show, where it made its production debut. With its elegant styling, impressive performance specs, and innovative technologies, the Ocean could be a very successful electric vehicle. Another thing that is very surprising about the Fisker Ocean is its cheap base price. Read more to find out why.

Price information of the 2023 Fisker Ocean

The cost of the base-level 2023 Fisker Ocean Sport trim is only $37,499. No other premium electric crossover SUV can match this level of affordability. In comparison, the base price of the 2022 Tesla Model Y is $57,990, while the base price of the 2022 Ford Mustang Mach-E is $42,895.

There’s a significant jump in price for the higher Fisker Ocean trims, though. The mid-tier Ultra trim costs $49,999, while the Ocean Extreme and Ocean One launch edition models cost $68,999. However, for electric vehicle customers that are looking for a premium crossover EV that won’t destroy their bank account, the base Ocean Sport trim is a bargain.

Reason for the affordable price of the 2023 Fisker Ocean

The reason for the cheap price of the 2023 Ocean is that Fisker outsources its production, according to Yahoo! Finance. As a result, the EV startup doesn’t have to invest a great deal of money into manufacturing and assembly plants, which can be very expensive. This lowers the overall cost of the Ocean for consumers.

Henrik Fisker, the founder and CEO of Los Angeles-based Fisker, describes how the automaker’s business model is similar to that of Apple:

“We have a whole asset-light business model — it’s a little bit like Apple (AAPL), Foxconn, if you want — in terms of we concentrate on the product, the marketing, the design, the development, and then we outsource manufacturing. We don’t have to put thousands of dollars [in] each car because we have to keep the lights on in the factory, and pay real estate taxes and whatever it all is.”

– Henrik Fisker, founder and CEO of Fisker Automotive

For building the Ocean crossover EV, Fisker utilizes large contract manufacturer Magna, which is based out of Canada. Magna also produces cars and car components for other automakers, such as GM, BMW, and Ferrari. 

Also, Fisker outsources the battery production of the Ocean to CATL, which is the largest battery manufacturer in the world. The base-level Ocean Sport uses “cheaper LFP (lithium iron phosphate) battery cells,” while the higher trim Ocean models use “more energy-dense nickel manganese cobalt cells,” which cost more to produce. 

Fisker Ocean: ‘The most sustainable car on the planet’

In addition to its affordable price, the Fisker Ocean is an environmentally-friendly car, with its zero-emission electric powertrain and use of sustainable materials. This includes recycled fishing nets and other plastics. Fisker claims that the Ocean is the “most sustainable car on the planet.” Also, Fisker gave the Ocean crossover EV its name because of the automaker’s aim to protect the ocean.

The outsourcing of production of the Ocean is a smart choice by Fisker. It results in a lower price compared to other electric crossover SUVs. Also, without having to accrue debt to build manufacturing facilities, there is less financial risk for Fisker.