Fisker’s founder and CEO told CNBC on Thursday that the electric vehicle startup is trying to do more than just steal Tesla’s market share.
Henrik Fisker made the comments in an interview on “Mad Money”, the day after his company announced that it had signed a major production contract 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 go and get Tesla customers out of Tesla,” Fisker told host Jim Cramer. “This is great if they come … but the real market opportunity is 80 million people who buy a new car each year. This is a huge opportunity.”
Cramer asked Fisker how he believes the design of the company’s first expected vehicle, called Ocean, rivals that of Tesla by Elon Musk, which is the dominant US brand of EV
Although battery-powered electric vehicles expect to continue to grow in market share compared to internal combustion engines, the space is increasingly crowded. In addition to startups like Fisker, automotive titans like General Motors and Ford are investing heavily.
“We didn’t want to do another Tesla ‘me too’. That’s what they’re doing. That’s great, but we really want to make an alternative,” said Fisker, promoting Ocean as a true SUV. “This is what sets us apart from other automakers that are actually making hatchbacks or sedans,” he added.
Ocean, which has 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 car supplier Magna International to manufacture the Ocean.
Fisker, a well-known car designer whose previous EV startup went bankrupt, said the company’s ability to secure key partners at Magna and Foxconn has demonstrated its potential.
Fisker and Foxconn have already signed a memorandum of understanding, with the deal closing in the second quarter of 2021. According to the companies, Foxconn plans to make Fisker’s second vehicle; production is scheduled for the fourth quarter of 2023.
“When it comes to Foxconn, I think it really marks the fact that we have a business model that works. It wasn’t just a single thing that we made a deal with Magna,” said Fisker.
Fisker, which went public last year through a reverse merger, saw its shares drop 4.43% on Thursday to $ 21.58 a share. The company released results for the fourth quarter after the bell, reporting an operating loss of $ 31.3 million.