Fisker CEO Henrik Fisker announced during the automaker’s recent earnings call that development work on the affordable Fisker Pear electric vehicle has been paused. The Pear, expected to cost less than $30,000, will be delayed as the company explores investment opportunities from 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,” said Henrik Fisker.
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While the CEO did not disclose the name of the automaker, he ruled out Foxconn, which was previously in the running to manufacture the Pear at its Ohio facility. The negotiations with the unnamed automaker have led to the end of Fisker’s relationship with Foxconn, which was also responsible for building the Lordstown Endurance pickup truck.
A partnership with a larger, well-established car manufacturer could provide the necessary financial support for Fisker to continue its operations. An investment could enable the company to develop new electric vehicles, including the Pear and the Alaska pickup. Additionally, co-developed EVs could benefit both Fisker and the partner automaker by reducing development costs and offering more affordable electric vehicles.
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Several automakers, such as Renault and Volkswagen, are exploring similar partnerships, particularly for small electric vehicles. Stellantis CEO Carlos Tavares believes that such collaborations are crucial for Western automakers to compete against inexpensive Chinese EVs.
“We are not planning to start external expenditure on our next projects until we have a strategic OEM partnership in place,” said Henrik Fisker. While the Pear’s development has been delayed, Fisker will focus on expanding production of the Ocean, its existing SUV model. The company plans to introduce new software updates for the Ocean to address customer complaints and improve the vehicle’s performance.
Despite the challenges, work on the Alaska pickup will continue, contingent on reaching an agreement with the unnamed automaker. In terms of financial performance, Fisker reported losses of $463.6 million for Q4 2023, translating to a $1.23 per share loss. Revenue for the period was $200.1 million. Production figures for the Ocean indicate that 4,789 units were produced, with 3,818 delivered. Total production for 2023 reached 10,193 units, with 4,929 delivered over the year.
