Fisker founder and CEO told CNBC on Thursday that starting electric vehicles is trying to do more than slip into Tesla’s market share.
Henrik Fisker made the comments in an interview with “Mad Money”, a day after his company announced that it had concluded a key production agreement with Foxconn Technology Group. The Taiwanese company is best known for its role in assembling iPhones for Apple.
“At the end of the day, we’re not just here to go and take Tesla customers away from Tesla,” Fisker told host Jim Cramer. “It’s great if they come … but the real market opportunity is the 80 million people who buy a new car every year. This is a huge opportunity.”
Cramer asked Fisker how he thinks the design of the company’s first-awaited vehicle, called the Ocean, rivals those of Elon Musk’s Tesla, which is the dominant EV brand in the United States.
While battery-powered electric vehicles are expected to continue to grow in market share compared to internal combustion engines, the space is becoming more crowded. In addition to startups like Fisker, established car titans such as General Motors and Ford are investing heavily.
“I didn’t want to make another Tesla, and I did. That’s what they do. It’s great, but we really want to make an alternative,” Fisker said, promoting the Ocean as a real SUV. “This will set us apart from other car companies that really make hatchbacks or sedans,” he added.
Ocean, which has a starting price of $ 37,499, is set to go into production in the fourth quarter of next year. In October, Fisker entered into an agreement with automaker Magna International to manufacture the ocean.
Fisker, a well-known car designer whose previous EV start-up continued to go bankrupt, said the company’s ability to secure partners in Magna and Foxconn has demonstrated its potential.
Fisker and Foxconn have so far signed a memorandum of understanding, with the agreement to be concluded in the second quarter of 2021. According to the companies, Foxconn intends to produce Fisker’s second vehicle; production is set for the fourth quarter of 2023.
“When it comes to Foxconn, I think it’s really stamping in steel that we almost have a business model that works. We didn’t just do something unique that we struck a deal with Magna,” Fisker said.
Fisker, which went public last year through a reverse merger, saw its shares close 4.43% on Thursday at $ 21.58 per share. The company released fourth-quarter results after the bell, reporting a $ 31.3 million loss in operations.