Fisker Produced 56 Cars, Delivered None, Still Very Bullish About 2023 Prospects

Fisker is one EV startup that few people consider a strong contender in the EV market. This doesn't stop its CEO Henrik Fisker from making bold statements about the company's prospects in 2023. Last year, Fisker produced 56 cars and delivered none to customers, but it somehow wants to deliver more than 42,000 cars this year.
Fisker expects to start Ocean deliveries in April 7 photos
Photo: Fisker | Edited
Fisker expects to start Ocean deliveries in AprilFisker expects to start Ocean deliveries in AprilFisker expects to start Ocean deliveries in AprilFisker expects to start Ocean deliveries in AprilFisker OceanFisker Ocean will also be powered by its SolarSky solar roof
Car startups face rough times in today's difficult market conditions, but Fisker thinks it can do better than others. Few people consider Fisker a strong contender to survive in the long term. Still, its CEO, Henrik Fisker, remains optimistic that his company will somehow be able to deliver more than 42,000 EVs by the end of the year. Fisker confirmed 65,000 reservations for its electric SUV Ocean, a slight increase from the 62,000 reported in Q3 2022.

Fisker's optimism came from lower-than-expected spending in 2022 and the Ocean deliveries being on track to begin this spring. The company is assembling the Ocean at Magna's contract manufacturing facility in Austria. Fifteen electric SUVs were completed before year's end, and they are used now for testing by both Fisker and Magna to improve the manufacturing process. Other 41 have been assembled in 2023, and Fisker expects to ramp up production once it completes the testing needed for regulatory approval next month.

Although the Fisker Ocean won't benefit from the IRA incentives because it's built in Europe, the electric SUV has a starting price of only $37,499. This is for the base trim, which has a projected EPA range of about 250 miles (440 km). Longer-range versions would also be offered, with prices starting at about $50,000. Fisker claims the Ocean could have "the longest range of any SUV/crossover priced below $70,000." Initially, Fisker said the longest-range Ocean would travel 350 miles (560 km) on a charge. Tesla Model Y, its main competitor, has an EPA range of 330 miles (530 km) and costs $54,990.

All these claims are considered too good to be true by analysts. Garrett Nelson from CFRA Research even calls Fisker's production target "borderline ludicrous given the struggles of EV peers and Fisker's production of 56 vehicles so far."

Considering the inflation and skyrocketing battery material prices, we'd say even Ocean's prices are hard to believe. Fisker is also working on PEAR, another crossover it says would sell for $29,900 starting in 2024. The PEAR would be assembled in the U.S. by Foxconn using the former Lordstown Motors factory in Ohio.

The bullishness doesn't stop here, though. Henrik Fisker said the price of its vehicles is the main factor in getting good results. He also forecasted that his company would report a gross margin range of 8-12 percent and positive earnings before interest, tax, depreciation, and amortization (EBITDA) this year. This is another bold statement coming from the CEO of a company that reported higher-than-expected losses in Q4 2022. Its cash reserves are rather weak, at $736 million, barely covering the projected expenses for this year, estimated at $610 million.
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About the author: Cristian Agatie
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After his childhood dream of becoming a "tractor operator" didn't pan out, Cristian turned to journalism, first in print and later moving to online media. His top interests are electric vehicles and new energy solutions.
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