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Fisker Chairman & CEO Henrik Fisker joins Yahoo Finance Live to discuss the company's earnings, the electric Ocean SUV model, EV competition, and growth.
EMILY MCCORMICK: Welcome back. This afternoon the electric vehicle company Fisker reported quarterly results that topped estimates. We could see that stock is up in after-hours trading. And fourth-quarter revenue came in at $41,000 and losses per share totaled $0.47. Henrik Fisker, Fisker chairman, and CEO joins us now for more, along with Yahoo Finance's own Pras Subramanian.
Henrik, thank you so much for your time this afternoon. Fisker just opened reservations for the 2024 PEAR this week, and also just announced that Fisker Ocean reservations exceeded 30,000. How do you expect demand for the PEAR to compare with the Ocean as production of both of these models progresses?
HENRIK FISKER: Well, you know, this year we saw the Fisker Ocean reservation go up 400% on a daily basis versus, yeah, last year. And the PEAR, we just started opening reservations yesterday and we already have over 1,000 reservations, which is about $1 million of potential revenue per hour, which is pretty amazing. So I think we're even beyond what we had hoped on the PEAR already. So I'm very excited about it.
PRAS SUBRAMANIAN: Hey, Henrik, Pras here. You know, I saw-- I haven't seen the PEAR, but I saw the Ocean in LA just a few months ago. A really impressive-looking prototype there. How is that timeline looking? I know you guys reiterated it that you're going to see a fall release of that car. What about the actual kind of prototyping and the sort of verification build at the plant with Magna?
HENRIK FISKER: Yes, so it's interesting you ask that because I'm actually flying over next week to see the first Ocean prototype coming off the prototype line. So I'm super excited by that. We have seen the first parts coming in are very high quality for this early in the process.
But we are on schedule to start deliveries in November this year. And of course, we are tackling like everybody else, a chip crisis and supply chain, but so far, we have been able to mitigate through that and we are on target. And I'm looking forward to fly over and see the vehicle on the prototype line next week.
EMILY MCCORMICK: The PEAR is being offered at just under $30,000 before taxes and incentives. And affordability has been a major tenet of EV development for many companies and many of these cars are now being offered between that $30,000 to $40,000 range. How important is pricing in helping consumers make their decision on an electric vehicle or are there other factors about the brand or the model that you think play a bigger role at this point?
HENRIK FISKER: So you know, I think what's happened is that we have now reached sort of a little bit of a saturation in the luxury EV market. And very few companies have concentrated on affordability. And that's really why we went in that market because we see the opportunity to grab a big market share there. Of course, with the Ocean starting under $40,000, the PEAR under $30,000, I think price is important, quality is going to be important. And also, I think the new technology that we are planning to put into the vehicle.
I think the next generation of buyers are looking for connectivity, large screens, entertainment, and those are all the things we want to provide in our EVs, as well as a seamless customer experience. I think that's also changing the mindset of people shifting over to EVs. They want easy transportation, easy mobility, and affordability. And that's why we are going into this market.
PRAS SUBRAMANIAN: Hey, Henrik, talking about the Ocean again, you guys crossed that 30,000 mark for reservation in the order book. How has that been trending recently? And also I noticed that you guys have added some fleet orders too, ServiceNow ordering 200 oceans for their fleet. How does that-- how has that been looking?
HENRIK FISKER: Yeah, like I said, we're up 400% on a day-to-day basis on reservations versus last year and we just keep seeing it going up. In fact, I think today we'll probably pass 31,000 reservations, which by the way, is about $1.7 billion of potential revenue. On the side of the potential fleet customers, we are right now in early talks with several global rental car companies about some pretty large fleet orders. And because we can see, of course, that a lot of the more dynamic rental car companies that can really see where the future is going, I think they want to come in and get the most exciting EVs in the market, be the first one out there to offer it to their customers. And that's obviously a totally different segment than what we are going to do with our customers. So I think it is a really interesting collaboration.
And one other thing that's very interesting about our type of vehicle is the future technology we have in these vehicles, where we actually can sell things over there to a potential rental customer together with a rental company. In the old days, you would have to carry a big bag of your navigation system and hook it into the car. Today we can sell these type of options over the air as you take off with the vehicle depending on what you want. So there's whole new opportunities there and that's the discussions we have been having with multiple global rental car companies. So I see big potential for orders there.
EMILY MCCORMICK: And in terms of production, Fisker has production partnerships with Magna Steyr and also with Foxconn on the Fisker PEAR for that development. Looking ahead, do you plan to expand these existing relationships as you continue to ramp production and develop new models, or are there other manufacturers you're looking to work with in the future as well?
HENRIK FISKER: Well, you know, right now we've got I think two of the top most interesting manufacturers in the world. You know, Magna is known as being the highest-quality automotive contract manufacturer in the world. They have done it for many, many years. We have been extremely happy with the collaboration. The fact that they're on schedule, their build so far, what we have seen is super high-quality. They know what they're doing. And that's one of the reasons, it gives us so much confidence we'll hit SOP here in November.
Of course, Foxconn is totally different but also a conglomerate, international in manufacturing. And of course, when it comes to technology and tech parts, I would say a supply chain, that's why they're really interesting for us on the PEAR program. So I think we have enough in these two manufacturers to actually be able to produce eventually, over a million vehicles a year. And that's something that my goal is before 2030 for sure.
PRAS SUBRAMANIAN: Hey, Henrik, one last question here, what do you think is the biggest threat to Fisker at the moment in terms of success? Or put another way, is it kind of like government inaction with regards to EV infrastructure that is the biggest obstacle for the company?
HENRIK FISKER: So I don't think we have any real obstacles because we went in for the affordable EVs. And we are quoting our pricing of $37,500 or $29,900, that's without any government incentives. So if we actually would have an incentive, on the PEAR you're looking at maybe a $22,500 vehicle. So I think we are way ahead of the curve. You know, we started early on thinking about affordability. Our entire organization, our entire development process were built around creating affordable vehicles for the world. It was not created on the basis of a luxury vehicle. If you start with a luxury vehicle it's very hard to get the organization tuned into making affordability but we started the other way. So I kind of think we're ahead of the curve there and I really don't see any immediate threat specifically because our vehicles are coming out in the next nine months, the first one. So I think we're ahead of the curve.
EMILY MCCORMICK: All right, we'll leave it there for now. Henrik Fisker is Fisker chairman and CEO. And Yahoo Finance's own Pras Subramanian. Thank you both so much for stopping by this afternoon.