Electric vehicle (EV) startup, Fisker, has recently secured a significant deal to sell emission credits to a major automaker. This move is seen as a strategic maneuver by Fisker to weather the stormy economic environment and combat the ongoing price war initiated by Tesla.
The announcement, made on Tuesday, comes just a month after Fisker reduced its production target for 2023. Additionally, the company reported a first-quarter adjusted loss that surpassed expectations, further highlighting the challenges it faces.
Although Fisker did not disclose the identity of the automaker it sold the credits to, it is worth noting that various EV manufacturers, including Tesla, have been capitalizing on the sale of credits earned by surpassing emission and fuel economy standards. This practice has become a lucrative revenue stream for financially constrained startups in the industry.
Moreover, EV companies are grappling with a slowdown in demand due to factors such as inflation and sky-high interest rates, which have eroded consumers' purchasing power. Tesla's strategy of lowering prices to boost sales volume has also impeded the ambitions of other players in the market.
Despite these hurdles, Fisker remains focused on its goals. The company announced that it will commence deliveries of its all-electric Fisker Ocean SUV in the United States later this month. This move marks a significant milestone for Fisker as it seeks to establish a presence in the competitive EV market.
As the EV industry continues to evolve, partnerships, emission credit deals, and innovative strategies will play a crucial role in determining the success of companies like Fisker. With its upcoming deliveries and ongoing negotiations, Fisker aims to position itself as a prominent player in the market, despite the challenging circumstances it faces.