Tesla Rival Fisker's Debut Model Ocean SUV Goes Into Production Today: What Investors Should Know

Thursday could prove to be a redemption of sorts for electric vehicle startup Fisker Inc. (NYSE: FSR) as its debut model, the Ocean SUV, goes into production.

What Happened: Fisker, founded by former BMW AG (OTC: 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. (NYSE: 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 (NASDAQ: 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. (NASDAQ: AAPL) supplier Hon Hai Precision Manufacturing Company Ltd. (OTC: 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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