EV startup Fisker struggling to meet internal sales goals, documents show

According to confidential documents obtained by TechCrunch, Fisker, the electric vehicle (EV) start-up, is far from achieving its CEO and founder Henrik Fisker's mission of delivering 300 electric SUVs daily worldwide. For most of December, the company aimed to hit an internal North American sales target of 100 to 200 vehicles, where most of its stock and sales efforts are focussed. However, only a dozen or two of their Ocean SUVs were being sold daily, miles away from their set goal. The documents were procured from an anonymous source due to the sensitivity of the information.

Fisker's SUVs are being manufactured in several European countries, majorly in Austria by Magna Steyr, since North America has been the start-up's prime market since its inception. The company declined to provide a comment. The internal figures support the company's recent announcement to cooperate with dealerships to market its Ocean SUV in the U.S., a shift away from the Fisker-endorsed direct sales model since its inception in 2020.

The company's claim of a rising demand in a press release contradicts the in-house data. While the start-up had plans to open showrooms across North America under its direct sales model, to date, only two flagship “Fisker Lounges” have been inaugurated. According to Henrik Fisker, the lack of physical outlets has impacted sales.

Like Fisker, several other companies are struggling to generate demand for their EVs. Market capture and brand establishment is a common hurdle for all newcomers. Lucid, for instance, admitted that marketing its luxury sedan was a significant issue post-production. On the other hand, Rivian's deliveries fell 10% in the last quarter of 2023.

In October, Fisker announced it shipped over 1,200 SUVs globally and had achieved a record of 107 daily deliveries on November 16 due to a "new distribution strategy." The information obtained shows a decline in the previously reached pace throughout December.

The sluggish delivery rate has widened the gap between the number of Ocean SUVs Magna produces and the quantity sold. Fisker disclosed on Friday that while Magna produced 10,142 SUVs last year, only about 4,700 were delivered. The delay in the earliest cars was caused by software issues, besides problems with a supplier that led to slower roll-out.

In 2023, Fisker reduced its initial claim of Magna producing 42,400 Ocean SUVs due to the promise of strong demand in the US and Europe. The demand, however, has not been realized. Instead, the figure was cut down several times in 2023, finally reaching about 10,000 by December 1 to help the start-up to save working capital. Despite the significant drop, Henrik Fisker maintained optimism, stating that his company continues to "accelerate sales and deliveries."

Last week, the company stated that the “majority” of the 4,700 vehicles sold last year were top-tier Ocean One trim. The first more affordable trim, the Ocean Sport, was recently shipped to a customer in the U.K.