Ocean SUV on track; Annual capacity of 400,000 to come by 2024
Fisker (FSR) shares are on the move after the company released an upbeat quarterly financial report.
Although the EV automaker has yet to report significant revenue or profit, its first upcoming model, the Fisker Ocean SUV, crossed 56,000 reservations as of August 1. Of these, 5,000 are for the special edition Fisker Ocean One, which requires a $5,000 down payment.
Fisker has confirmed that it is ready to begin production of the Fisker Ocean on November 17 at its contract partner Magna Steyr (MGA) factory in Europe. Fifty-five prototypes have been built so far at this plant.
“We’ve been building cars all year [in Europe] and we have also, I think, managed our supply chain very well; we are always on schedule,” CEO and Founder Henrik Fisker, CEO of Fisker, said in an interview with Yahoo Finance. “I think we may be the only electric vehicle company that hasn’t delayed or lowered our production forecast; in fact, we are trying to increase production next year due to the high demand for our vehicles.
Fisker himself posted footage of himself getting around Los Angeles in one of the Fisker Ocean prototypes.
“We still have a few tweaks to make – it’s not perfect and I want perfection,” Fisker said of the prototype. “But it’s great to drive it. It certainly gets a lot of stares because people are wondering, “What is this?” It’s quite exciting.
The company also noted that its other contract partner, Foxconn, has completed the acquisition of a production facility in Ohio, where Foxconn will build Fisker’s second vehicle, the smaller PEAR SUV.
The PEAR is expected to have a starting price of less than $30,000, and Foxconn intends to build 250,000 PEAR units per year once production ramps up. The pear will debut in 2024.
“I think there’s a real lack of cool, beautiful, fantastic high-tech electric vehicles that are affordable,” Fisker said. Currently, the Chevrolet Bolt EV (GM) and Nissan LEAF EV are the only electric vehicles in the United States that can be purchased for less than $30,000 before any tax credits.
“Our strategy is to go into market segments where there are very few competitors, and that’s why we’re making this vehicle for less than $30,000,” Fisker says of the PEAR. “We think there is huge potential in this market and this car will be amazing, revolutionary. It’s a different take on a vehicle, so we’re very excited about it.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on instagram.
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