Fisker’s founder and CEO told CNBC on Thursday that electric vehicle startups are trying to do more than just take away Tesla’s market share.
Henrik Fisker made the comments in an interview on “Mad Money,” a day after his company announced it had signed a major manufacturing deal with Foxconn Technology Group. The Taiwan-based company is best known for its role in assembling iPhones for Apple.
“At the end of the day, we’re not just here to get Tesla customers away from Tesla,” Fisker told host Jim Cramer. “That’s great when they come … but the real market opportunity is the 80 million people who buy a new car every year. That’s a huge opportunity.”
Cramer had asked Fisker how he believes the design of the company’s first expected vehicle, the Ocean, competes with that of Elon Musk’s Tesla, the dominant EV brand in the US.
Although battery-powered electric vehicles are expected to continue to increase their market share compared to combustion engines, the space is getting more crowded. In addition to startups like Fisker, established auto titans like General Motors and Ford invest heavily.
“We didn’t want to do another ‘me-too’ Tesla. That’s what they do. That’s great, but we really want to do an alternative,” said Fisker, who praised the Ocean as a true SUV. “That’s what will set us apart from other car companies that really make hatchbacks or sedans,” he added.
The Ocean, with a starting price of $ 37,499, is expected to go into production in the fourth quarter of next year. In October, Fisker struck a deal with auto supplier Magna International to produce the Ocean.
Fisker, a well-known auto designer whose previous EV startup has filed for bankruptcy, said the company’s ability to get high-profile partners in Magna and Foxconn has shown its potential.
Fisker and Foxconn have signed a memorandum of understanding so far, and the deal is expected to close in the second quarter of 2021. According to the companies, Foxconn plans to make the Fisker’s second vehicle; production is scheduled for the fourth quarter of 2023.
“When it comes to Foxconn, I think it really stamps in steel, almost like we have a business model that works. It wasn’t just a one-time thing that we got into a deal with Magna,” said Fisker.
Fisker, which went public through a reverse merger last year, saw its shares fall 4.43% to $ 21.58 per share on Thursday. The company released its fourth quarter results after the bell, with a loss from operations of $ 31.3 million.