Electric vehicle (EV) company Fisker Inc FSR expected the recent launch of its sustainable SUV to boost its share price, which has fallen 25% in the last year.
However, a reported delay of its follow-up model — the Fisker Pear — could spell trouble.
What Happened: The Pear, which stands for Personal Electric Automotive Revolution, was expected to enter production in 2024, but will be delayed a year.
See Also: Tesla Puts EVs To Scorching Test In Dubai Desert... Did They Pass?
The Pear's price tag was also supposed to be $29,900, but CEO Henrik Fisker announced at the "Financial Times Future of the Car" conference that it will likely start at 28,000 GBP (or $35,000, which is higher than original company estimates).
"It will be quite radical," Fisker said, according to Autocar. "It’s so radical that we actually have to make some new production methods."
A delivery delay to 2025 comes as the Pear will now have a dedicated steel chassis and fewer parts — a production method that requires more work than originally estimated.
“We don’t have the typical centre console that you can open up, and the typical glove compartment, and all these types of things. Today, we see the buyers care about how big the screen is in the car and how connected the car is," Fisker said. "They don’t necessarily care about some of these other typical automotive-related things.”
The Pear will also offer two battery sizes, with ranges of 100 to 150 miles, and a battery with 300+ mile capabilities.
“In two years, you will see people realizing they don’t need that (big a) range, specifically if they have a second car," Fisker added.
Foxconn, which trades as Hon Hai Precision Manufacturing Company Limited (OTC: HNHPF), is set to assemble the Pear at a former General Motors GM facility in Ohio.
Benzinga reached out to Fisker for additional commentary, but has not heard back.
Related Link: Fisker Brushes Off Ocean SUV Software Glitch Reports As Misleading
Why It’s Important: Fisker, which went public via SPAC merger in 2020, has been one of the most talked about EV companies. The company successfully delivered the Fisker Ocean on May 5 in Denmark, and now has grand ambitions for the Pear vehicle, with a goal of annual production of one million units by 2027.
The recent delays and price changes come after Fisker recently criticized his competitors, seemingly taking a dig at his former employer, Tesla Inc TSLA, for continuing to change their prices.
"We have not raised our prices for two years when we announce them, and we’re still cheaper or lower cost than our competitors,” Fisker said of the Ocean SUV. “I think everybody who reported on the price decreases on some of the vehicles — specifically one brand out there that we all know — forgot that the same people also announced the incredible increases that happened six months ago, a year ago, 1.5 years ago.”
While not naming Tesla specifically, the comments from Fisker come as Tesla leads a price-cut war against its rivals while also expanding production capabilities. Fisker also happens to have a longstanding feud with Tesla CEO, Elon Musk.
Fisker said in many cases, the new price cuts make the vehicles cost the same as they did two years ago.
Fisker Earnings: Fisker recently reported first quarter financial results where its revenue and earnings per share both missed analysts’ estimates, according to data from Benzinga Pro.
The Manhattan Beach, California-based company also lowered its 2023 production guidance to a range of 32,000 to 36,000 units. Fisker previously guided to produce 42,400 units in 2023. Production guidance for the second quarter is 1,400 to 1,700 vehicles.
FSR Price Action: Fisker shares trade at $6.20 on Thursday versus a 52-week trading range of $4.27 to $11.59.
Read Next: Fisker Teases Supercar In A Segment That Does Not Exist Today
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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