Fisker Says It’s Got More Than $300 Million Worth Of Preorders For Its Electric SUV

Fisker says it has initial orders for a high-end version of the Ocean SUV that will be worth more than $300 million.

Although the company promotes a relatively affordable version of Ocean, priced from $37,499 on its website, the first 5,000 orders are for the top-end Fisker Ocean One that will cost about $70,000 each, according to Fisker. The production of those units starts in Austria on November 17th. He said that lower-priced oceans will be available late in the 20th century. There are more than 56,000 orders for the SUV.

Higher income levels are interested in electric vehicles. They prefer the high-end vehicles. Fisker says there will be more of a leveling out in price and more interest in the year 2024. The business model we have is laid out in a way where we want to aim for volume, so we need a $37,500 car.

Fisker is the latest entrant in the U.S. electric vehicle market, following last year's launches of Rivian and Lucid. Fisker has a plan to cut into the sales lead ofTesla by shifting to cheaper models. A cheaper version of Ocean and a small utility vehicle called PEAR will be produced by it in Ohio with the help of electronics giant Foxconn. PEAR is aimed at younger buyers and will cost $30,000.

After building only a few thousand units of the $100,000 Karma plug-in hybrid luxury car, Fisker failed in his attempt to challengeTesla. He co founded the company with his wife.

Meet the Fiskers, the billionaire power couple taking on the electric car company.

The company reported second quarter results that were in line with analysts expectations. Fisker had a net loss of $105.9 million for the quarter and used about $191 million for vehicle development work and other expenses ahead of the start of commercial operations. The company said it had enough on hand to last through the start of Ocean production.

The Morgan Stanley analyst said that the cash consumption was in-line in the second quarter. "Fisker ended 2Q with cash to sustain operations through year-end before testing minimum cash..."

Before the results announcement, Fisker shares rose 5.8%. In after hours trading, they were the same.