Fisker's Goals Go Well Beyond Simply Chipping Away Tesla's Market Share: CEO

Madhukumar Warrier
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.

Fisker Inc. (NYSE: FSR) founder and CEO told CNBC in an interview on Thursday his electric vehicle startup sees “real market opportunity” in customers who buy a new car every year, rather than just focusing on gaining market share from EV market leader Tesla Inc. (NASDAQ: TSLA).

What Happened: Henrik Fisker made the comments after Jim Cramer, the host of CNBC’s “Mad Money”, asked him how the design of Fisker’s first electric SUV called the Ocean compares to the products offered by Tesla. The Ocean SUV is expected to be launched in the fourth quarter of next year.

“At the end of the day, we’re not out here just to go and take Tesla customers away from Tesla. That’s great if they come ... but the real market opportunity is the 80 million people who buy a new car every year. That’s gigantic opportunity,” Fisker told Cramer.

Why It Matters: The EV segment is billed as the future of the automotive industry. In addition to startups, some of the large, established automakers are making fully electric, and hybrid-electric vehicles, aiming to keep Tesla at bay and to take a pie out of Tesla’s growing business.

See also: How to Invest in Tesla Stock

California-based Fisker announced Wednesday a production deal with Apple Inc.’s (AAPL) Taiwan-based supplier Hon Hai Precision Industry Co., (OTC: HNHPF) popularly known as Foxconn.

The two companies will collaborate on a project named “PROJECT PEAR” to develop a breakthrough new segment EV, with production expected to start in the fourth quarter of 2023.

This will mark Fisker’s second EV brand after Ocean. In October last year, the company announced it entered into a deal with Magna International Inc. (NYSE: MGA) to manufacture the Ocean.

Price Movement: Fisker shares closed 4.4% lower at $21.58 on Thursday.

Read Next: Tesla Shut Down Fremont Factory Temporarily Over Parts Shortages, Musk Confirms

Photo courtesy: Fisker Inc.

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.