Fisker Shares Rise Amidst Layoffs and Potential Nissan Investment: CEO Discusses Company’s Performance
Shares of Fisker (FSR) experienced a boost in trading after a challenging Friday morning. The company announced plans to cut 15% of its workforce and revealed that it would fall short of its production target by 13,000 vehicles, resulting in a 37% loss. However, Fisker’s fortunes took a positive turn in the afternoon following a Reuters report that highlighted Nissan’s (NSANY) potential investment of $400 million in Fisker’s truck platform.
Fisker CEO Henrik Fisker recently joined Yahoo Finance to discuss the company’s performance, shedding light on the layoffs and the company’s shift towards a dealer model. While Fisker refrained from commenting on the reported deal with Nissan, he did address questions about the automaker’s discussions with original equipment manufacturers (OEMs). Fisker stated, “We started talking to several OEMs, I think over 6 months ago, so we obviously have done a lot of work already. So I hope a deal closes as soon as possible.”
Fisker’s pivot towards a dealer model has been a key strategy to reach a wider customer base, not only in the US but also in Europe. The company has been signing up dealers at an impressive rate, with new dealers joining almost every day. Fisker emphasized the appeal of their electric vehicle (EV), the Fisker Ocean, which he believes is the only true competitor to Tesla’s Model Y, the best-selling EV worldwide. With a longer range and unique features, Fisker aims to offer customers an attractive alternative at a competitive price point.
Regarding the timeline for potential deals, Fisker acknowledged that discussions with various OEMs had been ongoing for over six months. While he couldn’t provide an exact timeline for closing a deal, he expressed optimism and emphasized that the negotiations were well underway.
In terms of production, Fisker highlighted the advantage of having a contract manufacturer, Magna Steyr, which enables them to scale production easily. The company’s current forecast for deliveries is promising, and if demand exceeds expectations, they can quickly increase production to meet customer needs.
When asked about other potential deals, such as one with Foxconn, Fisker stated that their main focus at the moment is the OEM deal. As a small startup, they need to concentrate their efforts on one strategic deal that aligns with their long-term goals.
Reflecting on the challenges faced by Fisker, Henrik Fisker expressed confidence in the company’s future. Despite the recent slump in the EV market, Fisker has witnessed significant interest in their vehicles. The shift to a dealer model is expected to drive sales growth, building on the 250% increase in sales from Q3 to Q4. Henrik Fisker believes that their competitive vehicle, starting at $38,999, will continue to attract customers and generate sales even in a challenging market.
As the leader of Fisker during this critical period, Henrik Fisker remains focused on accelerating dealer sign-ups to generate cash quickly. By increasing sales, Fisker aims to overcome potential cash crunches and ensure the company’s sustainability. The company has already made significant progress, with 17 new dealer points established since January and plans to reach 50 by the end of the quarter.
Addressing concerns about compliance with the New York Stock Exchange (NYSE) listing requirements and potential delisting, Fisker expressed confidence that they would regain compliance within the given timeframe. He cited the ongoing dealer sign-ups and potential strategic deals as factors that would positively impact the company’s share price.
Despite the challenges faced by Fisker, Henrik Fisker remains optimistic about the company’s future. With a strong focus on expanding their dealer network, increasing sales, and securing strategic partnerships, Fisker aims to overcome the current hurdles and establish itself as a prominent player in the EV market.