Fisker, the California-based electric vehicle (EV) startup, recently revealed that it missed its production target for the second quarter due to a shortage of components. In the quarter ended June, Fisker produced 1,022 units of its Ocean SUV, which is lower than the 1,400-1,700 vehicles it had projected. As a result, the company’s shares fell by 2% in premarket trading. This news is a setback for the EV industry, which is facing heightened challenges with rising costs and supply chain disruptions. In this blog, we’ll explore the reasons behind Fisker’s production shortfall, and what it means for the company and the EV industry at large.
There were a few suppliers that had challenges ramping up to the targeted Q2 levels, as they did not receive components from sub-suppliers in a timely manner. This caused a chain reaction, which ultimately affected Fisker’s production output. While the company remains confident it will produce over 1,400 vehicles in early July, this recent setback highlights the issues faced by EV manufacturers in today’s market.
Fisker’s latest production figures come amid reports that some EV startups are struggling to maintain their cash reserves. High costs and inflation-related expenses have put pressure on many players in the industry, leaving some with limited funds and uncertain futures. For example, Lordstown Motors filed for bankruptcy protection in June 2021, while Electric Last Mile Solutions filed for the same last year.
Despite Fisker’s recent production shortfall, the company is still forging ahead with its plans to expand its EV product portfolio. In fact, the company plans to launch two more EV models by the end of 2025. The first model, the Fisker Ocean, is expected to hit showrooms later this year. The luxurious EV is equipped with advanced features such as a solar roof, vegan interior, and up to 300 miles of driving range.
Fisker’s Ocean SUV is also significant because it marks the company’s first entry into the EV market. Ocean is expected to compete with other luxury EVs such as the Tesla Model S and the Porsche Taycan. However, competition in the segment is fierce, with established brands like BMW, Audi, and Mercedes-Benz also entering the EV fray.
Fisker’s recent production shortfall is indicative of the challenges that EV manufacturers face in today’s market. However, it’s worth noting that the company is not alone in these struggles, as others in the industry have also been affected. Nonetheless, Fisker remains steadfast in its commitment to the EV industry, with plans to launch two more models by 2025. The Ocean SUV, which began deliveries in the US last month, is expected to give established luxury EV manufacturers a run for their money. In conclusion, while Fisker’s path to success may have hit a bump in the road, the company’s long-term prospects in the EV market remain promising.
