Fisker's (NYSE: FSR), a startup in the electric vehicle industry, delivered its Ocean SUV to Europe last week despite other EV startups failing on execution. This model has the longest range of all electric SUVs available in Europe, and could heat up the competition.
Fisker CEO Henry Fisker handed over the limited Ocean One Launch Edition model to the buyer in the Fisker Center+ facility located in Copenhagen.
Fisker stated, "I am super excited to be at Copenhagen to give over the first Fisker Ocean."
The model's WLTP range of 440 UK Miles is the longest among all electric SUVs available in Europe.
A longer range is a major factor in EV adoption, as it reduces range anxiety. This is the fear that some drivers have of their vehicle losing charge halfway.
Tesla has invested in a charging network that gives them a competitive edge. Tesla is the world's largest seller of battery electric vehicles (BEVs).
Tesla is a role model for EV startups and most aspires to replicate the company's operational as well as financial success.
Most EV startups, however, are struggling. NIO, the "Tesla" of China, delivered less than 10,000 cars in April.
Lordstown Motors warned of bankruptcy, while Lucid Motors -- once considered a Tesla killer by analysts -- expects to only produce 14,000 vehicles in 2023.
Fisker Delivers First Car in Denmark
Fisker, on the other hand, expects to manufacture 42.400 cars by 2023. Many analysts, including Pavel Molchanov from Raymond James and Garrett Nelson from CFRA, find this target to be too high. Nelson called it "borderline ridiculous."
Fisker stated that they expect gross margins to be between 8-12% in 2023, and could also become EBITDA-positive.
The company's success would not be a small feat. Rivian Motors and Lucid Motors still have negative gross margins, and the first expects to make a profit only in 2024.
FSR Opts for Third-Party Manufacturing
The business models are also different. Rivian, Lucid and Fisker have all followed Tesla's lead and set up their own factories.
Magna will build the Ocean SUV while Foxconn will make the PEAR.
Foxconn believes that EV contract manufacturing is a huge opportunity and aims to produce cars for Tesla in the future.
Foxconn and Saudi Arabia have also formed a joint-venture to produce electric vehicles in the Kingdom.
Lucid Motors is the largest stockholder in any case.
Fisker has a long way to go before it can scale up its deliveries. Almost all startup EV firms have failed to ramp up production, and the ramp-up was much slower than anticipated.
Lucid, for example, originally planned to produce nearly 50,000 cars by 2023. However, the current guidance is only a third that.
Fisker will offer battery swapping starting in 2024
Fisker and Ample have partnered to offer battery swapping starting in the first quarter 2024. NIO offers battery swapping, which lowers the cost of purchasing an electric vehicle.
Fisker will initially target fleet operators who are interested in making the switch to electric vehicles. Fisker would split the revenue from battery swapping with Ample as part of this deal.