Company Sharpens Focus on Operations and Execution of Business Plan
Finance and Accounting Leadership Strengthened
Deliveries Accelerated and Ownership Experience Enhanced
Discussions With Strategic Partners Advancing
- The company continues to expand real estate footprint to accelerate deliveries in US and Europe.
- Fisker has enhanced the ownership experience and is launching leasing solutions in Europe and North America soon.
- Fisker’s partnership team is in the advanced stages of discussions with several automakers for a strategic partnership.
- Fisker is also in discussion with automakers to sell emission credits in the US and has entered into a pooling agreement in Europe.
- Finance and accounting department is strengthened by new leaders and global consulting groups.
LOS ANGELES–(BUSINESS WIRE)–#EVs—Fisker Inc. (NYSE: FSR) (“Fisker”), driven by a mission to create the world’s most emotional and sustainable electric vehicles, today provided a business update for the month of November.
Increasing pace of deliveries and sharpening focus on growing current markets
The company has executed a new strategy to optimize deliveries in the US and Europe, overcoming early logistics hurdles and sustaining an increasing pace of deliveries. On Thursday, Nov. 30, Fisker had 123 vehicles either delivered or in transit to customers.
“Our teams have worked hard to overcome some early delivery challenges and are now setting an impressive pace as we prepare to close out 2023,” Chairman and CEO Henrik Fisker said. “We may not have hit our original forecast but taking current market conditions and negative sentiments around EV sales into account, I would say we are doing quite well, as we continue to accelerate sales and deliveries. This is yielding considerable revenue as we ramp up our business. I expect by the end of this year we will have delivered more customer cars than any Western EV startup did in their first year of deliveries. The company continues to sharpen its focus on growing its current markets and enhancing our sales and service offerings for the Fisker Ocean.”
Expanded real estate footprint and improved logistics
Fisker has opened its first Fisker Lounge in New York City’s Meatpacking District and improved delivery capabilities by establishing its own locations globally, staffed by ever-growing numbers of Fisker employees. The company has also added multiple transportation logistics partners to quickly move Fisker Oceans to delivery locations so that they can be delivered to customers more rapidly.
The company now has 14 US facilities devoted to retail, deliveries, and service that are open or planned to open over the coming months in Los Angeles, CA; New York City, NY; Long Island City, NY; Vista, CA; Redwood, CA; Huntington Beach, CA; Tempe, AZ; Brentwood, TN; Oklahoma City, OK; Acworth, GA; Owings Mills, MD; Dallas, TX; and Naples, FL. Fisker has also opened 19 facilities in its European launch markets (Austria, Belgium, Denmark, France, Germany, the Netherlands, Norway, Sweden, and the United Kingdom) with plans to open three more by the end of 2023.
To improve deliveries and keep costs low, Fisker has partnered with Boxer Property to use their real estate portfolio for vehicle delivery and logistics. Boxer Property is owned by Andrew Segal and Justin Segal, both early Fisker investors, and was founded in Dallas in 1992 to acquire, manage, lease, administer and sell closely held commercial properties. Boxer now manages 15 million square feet of office, resorts, and malls.
Deliveries to commence in Canada
Additionally, the company has now achieved all required approvals and licenses, and satisfied insurance requirements, to sell vehicles in Canada. Fisker will commence transporting vehicles from US ports to Canadian customers next week, making deliveries in December. We have partnered with Scotiabank for financing and look forward to growing our presence in this important market.
Enhanced outreach, improved ownership experience, leasing solutions, and expected 2024 fleet orders
The company has also enhanced outreach to our reservation holders now that Fisker has nearly finished delivering launch edition Ocean Ones in the US and has begun delivering Ocean Extremes and Ultras in Europe. The objective is to convert reservation holders to orders in 2023 while preparing to maintain this process into 2024.
Utilizing its team of over 150 customer relations advisors and administrators, Fisker has elevated engagement with existing customers to address various issues and to improve the ownership experience. Fisker has also conducted over 3,500 test drives in the US and Europe. The company has updated its website and launched a direct-to-order process with no reservation step required; customers can choose a three-month delivery timeframe or browse limited existing inventory with a faster 4–7-day delivery option.
Fisker is also launching leasing solutions for the US, Canada, and Europe, with specific announcements forthcoming. Planning has commenced for 2024, with markets consolidated and both import requests and fleet orders under consideration. The company expects to provide guidance for 2024 at the end of December.
Strategic partnerships, emission-credit pooling agreement, and software updates
The company is in advanced discussions with several automakers and expects to provide updates on this topic in the coming months.
Fisker is pursuing agreements with several major automakers to sell EPA Greenhouse Gas emission credits (EPA GHG Credits). The company expects to generate 2.7 million GHG Credits through model year 2025. In Europe, Fisker has entered into a pooling agreement and expects to monetize credits for its 2023 vehicle registrations.
The company has continued its robust approach to software updates, making a strategic shift to a staged roll-out plan to take advantage of learnings from previous releases and to properly test the over-the-air pipeline. In December, a software release will improve software robustness; improve response time for remote commands; improve battery usage, especially when parked; and enable the vehicle to remain plugged in while an OTA software update is pushed.
In Q1 2024, Fisker expects further updates to improve the SolarSky roof capabilities; enhance the torque split between front and rear wheels; introduce a hill-holding function and one-pedal driving; alter the external vehicle sound and lock-unlock to be lower pitched while driving and more pleasant based on customer feedback; improve key fob functionality; enhance the audio experience; introduce a Pet Mode for pet comfort; and add ADAS features, among improvements. Some of these features may require homologation.
Adjusting production guidance
Fisker has made a strategic decision to reduce December production to prioritize liquidity to unlock over $300 million of working capital, which creates additional business flexibility. As a result, Fisker is adjusting production guidance to just over 10,000 units for 2023.
Finance and accounting team and other senior leadership hires
Fisker has expanded its finance and accounting team with the addition of Dan Quirk as EVP, Finance and Accounting. Dan joined Fisker after a 30-plus year career with Ernst & Young LLP, where he spent the last 18 years as an Assurance Partner within the firm’s Advanced Manufacturing & Mobility practice. Furthermore, the company has engaged several nationally recognized consulting firms to assist with projects ranging from IT enablement to process improvements and to prepare for the timely filing of its annual report on Form 10-K.
Fisker has also hired several new senior leaders, including Axel Buhr as VP, Finance & Controller Operations; Ram Iyer as SVP, EE Integration & Validation; and Wolfgang Hoffmann as Country Manager in Canada.
About Fisker Inc.
California-based Fisker Inc. is revolutionizing the automotive industry by designing and developing individual mobility in alignment with nature. Passionately driven by a vision of a clean future for all, the company is on a mission to create the world’s most sustainable and emotional electric vehicles. To learn more, visit Fiskerinc.com and enjoy exclusive content across Fisker’s social media channels: Facebook, Instagram, Twitter, YouTube, and LinkedIn.
This press release includes forward-looking statements, which are subject to the “safe harbor” provisions of the US Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “feel,” “believes,” expects,” “estimates,” “projects,” “intends,” “should,” “is to be,” or the negative of such terms, or other comparable terminology and include, among other things, the quotation of our CEO, the statements regarding the planned launch timing, pricing, delivery, production, and estimated range of the Fisker Ocean, the planned timing of the opening of Fisker facilities, the Company’s future performance, expansion of operations, software updates, and other future events that involve risks and uncertainties. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein due to many factors, including, but not limited to: Fisker’s limited operating history; Fisker’s ability to enter into additional manufacturing and other contracts with Magna or tier-one suppliers in order to execute on its business plan; the risk that OEM and supply partners do not meet agreed-upon timelines or experience capacity constraints; Fisker may experience significant delays in the design, manufacture, regulatory approval, launch and financing of its vehicles; Fisker’s ability to execute its business model, including market acceptance of its planned products and services; Fisker’s inability to retain key personnel and to hire additional personnel; competition in the electric vehicle market; Fisker’s inability to develop a sales distribution network; and the ability to protect its intellectual property rights; and those factors discussed in Fisker’s Annual Report on Form 10-K, under the heading “Risk Factors”, filed with the Securities and Exchange Commission (the “SEC”), as supplemented by Quarterly Reports on Form 10-Q, and other reports and documents Fisker files from time to time with the SEC. Any forward-looking statements speak only as of the date on which they are made, and Fisker undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.
Customer service: Support@fiskerinc.com
Fisker Inc. Communications:
Regional Head of Public Relations Europe
Frank Boroch, VP of Investor Relations