EV Company, Fisker, Faced with Difficult Season
In 2008, Tesla released its first electric car under investor and now CEO Elon Musk. By 2020, the vehicle company was not only experiencing strong fiscal quarters, but were producing a plethora of all sorts of electric vehicles, not just cars. It is safe to say that Tesla is in high demand. Whether its appeal is aligned with its environmental benefits or its functional abilities, Tesla, Inc. has just about saturated the electric car market.
Given this high-demand, it is no wonder that other electric vehicle companies have tried to make names for themselves in this industry, as well. For instance, Fisker Inc. emerged in 2016 out of California. Unfortunately for CEO Henrik Fisker, the success rate and profits do not compare to those of Tesla.
With an initial production target of up to 23,000 cars for 2023, there was a shift made to a production number of as little as 13,000 cars- almost half the initial goal. Third quarter also brought bad news for Fisker; the net loss turned out to be over $20 million more than anticipated…
It seems as though the biggest setback is working against competitors while still guaranteeing sufficient profits. In an industry as innovative and modern as this one, there are still a multitude of consequences to consider that any other motor companies do not need to concern themselves with. As a result of being a battery-powered machine, there are stationed plants designed to build said batteries. Woefully, there have been hiatuses in establishing these factories, since they would not abide by Biden’s Green Energy requirements…
Though Tesla is in a much better position than Fisker, there are still valid issues to consider, as well. Elon Musk is allegedly concerned with higher borrowing costs that would prevent a multitude of potential customers. He is aware of the unsteady market and how that may affect people’s vehicle spending habits.
It is difficult to say with certainty what is next for Fisker Inc. Who knows what the future may hold for EV altogether?