Electric vehicle startup, Fisker Inc., has ambitious plans to ramp up the delivery of its all-electric Ocean crossover to an impressive 300 units per day. This comes as part of the company’s broader effort to expand its retail teams and introduce new delivery centres across the United States.
Here are the top key points
- Fisker Inc. is ramping up deliveries of its Ocean all-electric crossover to about 300 units per day.
- The company is also expanding its retail teams and adding delivery centres in the United States.
- Fisker initially estimated that it would see a production of around 32,000 to 36,000 this year, but later adjusted this to 20,000 to 23,000 Oceans.
- At a rate of 300 deliveries per day, Fisker seems to be looking at hitting a production rate of about 9,000 Oceans per month.
- As of September 26, the company had reached a production milestone of 5,000 vehicles and delivered 900 customer vehicles in the US and Europe.
- The Fisker Ocean is produced by partner Magna Steyr in Austria and is priced from $37,499 to $68,999.
- Bank of America has rated Fisker stock as a “Buy” but noted that the company faces some risks from having less control over the Ocean’s manufacturing process and could be impacted by Tesla’s price cuts.
For 2023, Fisker has been rather cautious in its projections. Initial forecasts estimated annual production numbers to be between 32,000 to 36,000 units. However, this was later revised to a more conservative figure of 20,000 to 23,000 Oceans. With a daily delivery target of 300, Fisker’s monthly production rate could be approximately 9,000 Oceans.
Fisker
As of September 26, Fisker celebrated a significant production milestone of 5,000 vehicles. On the delivery front, 900 Oceans has found its way to customers in the US and Europe. The EV manufacturer also anticipates that hundreds more will be delivered by the end of the week.
Chairman and CEO Henrik Fisker expressed gratitude to their customer base for their patience. “As we transition from the third to the fourth quarter, our focus will be on significantly enhancing our delivery pace in the US and Europe. To meet the robust demand for the Fisker Ocean, we have set an ambitious daily delivery target of 300 vehicles. The progress we’ve made to reach these milestones has been commendable,” said Fisker.
Price
Magna Steyr in Austria, a subsidiary of Canada’s Magna International, is the production partner for the Fisker Ocean. The vehicle is competitively priced, with the fully loaded launch edition starting at $68,999. In comparison, the base model is priced at a very affordable $37,499 before add-ons. This puts the Ocean in a favourable position against the popular Tesla Model Y in the US, which begins at $50,490 before additional options.
However, not everything is smooth sailing for Fisker. Bank of America, which currently rates Fisker’s stock as a “Buy,” pointed out potential risks tied to the Ocean’s manufacturing process. Unlike many of its competitors, Fisker does not have complete control over the production of its vehicles. This could make the company vulnerable to actions from competitors, notably Tesla, which has reduced prices on its EV range this year.
Bank of America commented, “Tesla’s recent price cuts have clearly shown the competitive nature of the EV industry. Such pricing strategies have slowed the pace of reservations for the Ocean CUV. Future pricing changes could potentially affect not only Fisker’s sales volumes but also its profitability.”
Conclusion
It’s evident while Fisker is gearing up to meet its ambitious goals, the broader competitive landscape of the EV industry will play a crucial role in determining its success.
