Our goal is bigger than just taking Tesla customers



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Fisker’s founder and CEO told CNBC on Thursday that the electric vehicle startup was trying to do more than just gain market share from Tesla.

Henrik Fisker made the comments in an interview on “Mad Money” a day after his company announced it had signed a key production agreement 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 here just to go and drive Tesla customers away from Tesla,” Fisker told host Jim Cramer. “It’s great if they come … but the real market opportunity is the 80 million people who buy a new car every year.

Cramer had asked Fisker how he thought the design of the company’s first expected vehicle, called Ocean, rivals that of Elon Musk’s Tesla, which is the dominant electric vehicle brand in the United States.

As battery-electric vehicles are expected to continue to increase their market share over internal combustion engines, space is becoming increasingly congested. In addition to startups like Fisker, established auto titans like General Motors and Ford are investing heavily.

“We didn’t want to make another ‘me too’ Tesla. That’s what they’re doing. It’s great, but we really want to make an alternative,” Fisker said, touting the Ocean as a real SUV. “This is what will differentiate us from other automakers who actually make sedans or sedans,” he added.

The Ocean, which starts at $ 37,499, is expected to go into production in the fourth quarter of next year. In October, Fisker struck a deal with automotive supplier Magna International for the manufacture of the Ocean.

Fisker, a well-known automotive designer whose previous EV start-up filed for bankruptcy, said the company’s ability to find leading partners in Magna and Foxconn has demonstrated its potential.

Fisker and Foxconn have so far signed a memorandum of understanding, the deal is expected to close in the second quarter of 2021. According to the companies, Foxconn plans to manufacture the second vehicle for the Fisker; production is set for the fourth quarter of 2023.

“When it comes to Foxconn, I think it really means that we have a business model that works. It’s not just a one-time thing that we’ve done a deal with Magna,” Fisker said.

Fisker, which went public last year through a reverse merger, saw its stock close 4.43% Thursday at $ 21.58 per share. The company released its fourth quarter results after the bell, reporting an operating loss of $ 31.3 million.

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