Development progress on the budget-friendly Fisker Pear electric vehicle has hit a snag, as confirmed by company CEO Henrik Fisker.
Speaking during the automaker’s recent earnings call, Fisker revealed that the anticipated Pear, priced below $30,000, will experience a delay while the company pursues investment opportunities with other automakers.
“Fisker is in negotiations with a large automaker for a potential transaction which could include an investment in Fisker, joint development of one or more electric vehicle platforms, and North America manufacturing,” Henrik Fisker informed investors and journalists.
While the CEO did not disclose the identity of the automaker involved, he ruled out Foxconn, previously considered for manufacturing the Pear at its Ohio facility.
Media inquiries have been initiated with Fisker for further clarification, and any updates will be promptly incorporated into this report.
The Importance of Additional Investment for Fisker
Henrik Fisker underscored that these negotiations have led to the termination of Fisker’s association with Foxconn, which was also tasked with producing the ill-fated Lordstown Endurance pickup truck.
Securing support from a larger, established automotive entity could prove pivotal for Fisker’s sustainability. An infusion of capital could enable the company to advance its electric vehicle portfolio, encompassing projects like the Pear and the Alaska pickup.
Conversely, the collaborating manufacturer stands to benefit from jointly developed electric vehicles, potentially curbing development costs and facilitating the sale of more affordable battery-electric vehicles.
This strategic approach is gaining traction among various automakers, notably Renault and Volkswagen, especially in the realm of compact electric vehicles. Stellantis CEO Carlos Tavares advocates for such partnerships as a means for Western automakers to counter the competitive threat posed by economical Chinese electric vehicles.
Fisker’s Future Outlook
“We are not planning to start external expenditure on our next projects until we have a strategic OEM partnership in place,” Henrik Fisker emphasized. While the Pear faces a setback, Fisker intends to allocate its financial resources toward bolstering the production of the Ocean.
The company aims to ramp up Ocean production while introducing software enhancements for the SUV. Notably, some customers have reported initial challenges, prompting Fisker to deploy over-the-air updates to address issues and refine performance.
Interestingly, development efforts for the Alaska pickup will persist, contingent upon reaching an agreement with the undisclosed automaker, according to CFO Geeta Gupta-Fisker.
From a financial standpoint, Fisker recorded losses of $463.6 million in Q4 2023, translating to a loss of $1.23 per share. Revenue for the period amounted to $200.1 million. During this timeframe, 4,789 Oceans were manufactured, with 3,818 delivered. Overall production for 2023 totaled 10,193 units, with 4,929 deliveries over the year.
Also read: Fisker Ocean Launch Control Limit: Impact & Future Solutions
