Thursday could prove to be a redemption of sorts for electric vehicle startup Fisker Inc. FSR as its debut model, the Ocean SUV, goes into production.
What Happened: Fisker, founded by former BMW AG BMWYY and Aston Martin sports car design engineer Henrik Fisker, is based out of Los Angeles, California. The company has a partnership with auto parts maker Magna International Inc. MGA, with the latter manufacturing the Ocean SUV at its plant in Graz, Austria.
The Ocean SUV comes in four variants and has a starting price of $37,499 for the Ocean Sports model. The Ocean Ultra, the mid-tier variant, costs $49,999. The Fisker Ocean One and Ocean Extreme are both priced at $68,999, making them high-end trims. Both models have a range of 360 miles based on EPA standards.
Tesla Inc.'s TSLA performance and long-range all-wheel-drive variants of its Model Y SUV have a range of 330 miles, based on EPA standards. The pricing of the two variants is $62,190 and $58,190, respectively, including potential incentives and gas savings.
See Also: Tesla Vs. Fisker Vs. Rivian Vs. Lucid: Analyst Weighs In On EV Makers As Adoption Shifts To Top Gear
For Henrik, this is his second try. His initial car venture — Fisker Automotive Inc. that manufactured Karma hybrid sedan — filed for bankruptcy in 2013. The predicament followed a safety recall, bankruptcy filing by its battery supplier and Hurricane Sandy's impact on shipments.
This time around, Fisker started on a solid footing, as a SPAC deal provided it with financing. It also negotiated a dedicated supply line at Chinese battery manufacturer CATL.
Buoyant Order Momentum: Fisker’s CEO said on the earnings call in early November that it has over 62,000 reservations and orders for the Ocean SUV. The company confirmed in mid-August that the 2023 U.S. allotment of the Fisker Ocean Sport and Fisker Ocean Ultra were also sold out by mid-August.
The company said it is deliberately planning a four-stage ramp-up, eyeing production of 300 units in the first quarter, over 8,000 units in the second, over 15,000 units in the third and 42,400 units in the fourth.
What’s Next: Fisker has a collaboration with Apple Inc. AAPL supplier Hon Hai Precision Manufacturing Company Ltd. HNHPF, popularly called Foxconn, for a budget model car named Fisker Pear, priced under $30,000. The companies plan to start production of the model in 2024.
The Pear will be manufactured at the Ohio manufacturing plant Foxconn acquired, and a minimum annual production capacity of 250,000 is targeted.
Price Action: In premarket trading on Thursday, Fisker shares advanced 1.10% to $8.25, according to Benzinga Pro data.
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