Fisker Falls Short of Its Q2 Electric Vehicle Production Targets
Production Numbers
EV upstart Fisker produced 1,022 Ocean SUVs in the second quarter, falling short of its own expectations by several hundred vehicles. The company had anticipated producing between 1,400 and 1,700 electric vehicles (EVs) during this period.
Supply Chain Issues Blamed for Shortfall
Fisker cited a shortage of components from its sub-suppliers as the primary reason for the production shortfall. The California-based automaker is working closely with all suppliers to ramp up production to required volumes.
Shares React to Missed Target
The news sent shares lower in pre-market trading, but they have since rebounded and are now up more than 4% to $6.01. Despite this initial dip, the company’s stock price has remained relatively stable over the past few weeks.
Assembly Rate Exceeds Target
Fisker reported that it surpassed its targeted assembly rate of 80 units per day at the end of June and expects vehicles produced to exceed 1,400 in early July. This achievement is a significant milestone for the company and demonstrates its ability to meet production targets.
Investment in Battery Pack Capacity
The automaker is also investing in additional battery pack capacity to protect its compressed manufacturing timeline in 2023 and support higher volumes next year. By increasing its battery pack production, Fisker can ensure a steady supply of components for its vehicles.
Supply Chain Challenges Remain a Concern
Supply chain shortages have been a persistent problem for automakers since the COVID-19 pandemic. While most legacy automakers and newer entrants like Rivian have seen improvements in their supply chains, Fisker is still navigating these challenges.
Competition from Established Automakers
Fisker faces stiff competition from established automakers, which have years of experience and a proven track record in the EV market. However, the company’s innovative approach to electric vehicles and its commitment to sustainability may help it stand out in a crowded field.
Entering the Chinese Market
To mitigate supply chain risks and tap into growing demand for EVs, Fisker is planning to enter the Chinese market. The company aims to open a delivery center in China this year and commence deliveries of the Ocean SUV. It also plans to start manufacturing in China as early as 2024, which could add 75,000 Ocean SUVs to its production capacity.
Opportunities and Challenges
Fisker’s entry into the Chinese market presents both opportunities and challenges for the company. On one hand, it will gain access to a massive and growing market for EVs. On the other hand, it will face intense competition from established players in the region.
Conclusion
Despite the production shortfall, Fisker remains committed to its vision of becoming a leading player in the EV market. The company’s investment in battery pack capacity and its plans to enter the Chinese market demonstrate its determination to succeed in this highly competitive industry.
About the Author
Kirsten Korosec is a reporter and editor who has covered the future of transportation from EVs and autonomous vehicles to urban air mobility and in-car tech for more than a decade. She is currently the transportation editor at TechCrunch and co-host of TechCrunch’s Equity podcast.