What's Going On With Fisker? CEO Shares Updates On EV Reservations, Production, International Expansion, US Tax Cuts

Zinger Key Points
  • Henrik Fisker shares updates on the company's EV production, reservations and expansion at recent investor event.
  • The company plans to ramp up production and introduce new models.

Electric vehicle company Fisker Inc FSR could be in the spotlight for investors with strong reservation numbers and late 2022 production.

A recent interview from CEO Henrik Fisker shared an update on the company and what’s ahead.

What Happened: The Fisker CEO spoke as part of a fireside chat at the Cowen Annual Global Transportation & Sustainable Mobility Conference.

Fisker shared updates on several parts of the company’s business, including production, future models and international expansion, which were published by the company blog, Fiskerati.

Fisker Ocean: The highly anticipated Fisker Ocean SUV is on track to begin production on Nov. 17, 2022, according to Fisker. The electric vehicle company had almost 60,000 reservations for the Ocean, which was ahead of company expectations of 50,000 by the end of 2022.

The Fisker Ocean Sport and Ultra models sold out quickly, according to Fisker.

The Fisker CEO saw the company hitting a target of more than one million vehicles a year in 2027 led by a strong brand, product and design.

The Fisker Ocean will continue its roadshow for its vehicles with appearances at the Norwegian and Paris Auto Shows in October 2022.

Partner Magna Steyr, owned by Magna International Inc MGA, will produce the Fisker Ocean. Fisker said Magna is looking at increasing manufacturing capacity in 2023, including adding the U.S. in 2024.

Fisker believed the company would be able to increase production faster than other companies thanks to its relationship with Magna, which has an equity stake in the company.

The CEO said Fisker could build 40,000 vehicles in 2023, which would make Fisker the fastest-growing electric vehicle company in history, with Fisker briefly mentioning Tesla Inc TSLA during his comments.

Related Link: Fisker Announces Magna As Partner On $37,499 Ocean SUV

U.S. News: Fisker spoke on the Inflation Reduction Act, which encourages U.S. production for federal tax incentives. Fisker said if U.S. production begins, the Magna Steyr overseas production would be mainly for customers in Europe.

Separate from the fireside chat, Electrek reported that Magna is exploring plans to produce more vehicles in North America that would qualify for the U.S. federal tax credits. The Inflation Reduction Act stated that vehicles and battery components must be assembled in North America to qualify for the tax credits.

The Fisker Ocean will be built in Austria, which takes away tax credits it thought it could offer customers to get the price to under $30,000 after the credit.

Fisker also highlighted the strong U.S. dollar being a tailwind for the company as most Ocean reservations were made in euros. Lots of reservations came in when the euro was trading at $1.20 against the U.S. dollar; the currencies are now at parity.

New Models: Outside of the Fisker Ocean, the company has several vehicles that have been announced.

Fisker referenced the Ronin Supercar during the fireside chat, which will be run by Fisker Magic Works in the U.K.

“The Fisker Ronin will be the sexiest car you’ve ever seen,” Fisker said, mentioning it could redefine the sports car EV segment. Fisker said the Ronin supercar will be revealed in 2023.

Fisker is also developing the Pear electric vehicle, which could have a drivable prototype by the end of the year. Fisker said the Pear could reinvent the automobile and would have a historical moment when the vehicle is released.

Fisker saw the Pear serving for personal use and could partner on food delivery and car sharing. Partnering with companies in several areas could help show off the use cases and help with funding, Fisker added.

Financing: Fisker is offering its Fisker Flexible Lease program for vehicles, which Fisker called a breakthrough for customers. Under the terms of the flexible lease, customers can give the car back at any time.

The company is working with banks to expand the lease program and also on installment financing for customers looking to purchase vehicles.

International Expansion: Production will begin in late 2022 on the Ocean with targets of Europe and the U.S. for initial release.

Fisker said it plans to enter China in the first quarter of 2023 with the opening of reservations. Deliveries could begin in China in the fourth quarter of 2023.

The company explored manufacturing in China and could utilize partners Manga and Foxconn, which both manufacture vehicles in China. Fisker said China would be a big focus for the company and the Pear could be a huge seller in the region.

Fisker plans to ship vehicles to India in July 2023. Fisker also said he is flying to India in three weeks to look at plans to build Fisker vehicles in the country.

FSR Price Action: Fisker shares are up 1.82% to $8.65 on Friday.

Photo: Courtesy Fisker

 

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