In a recent development on Tuesday, Fisker (NYSE:FSR) and Magna International (NYSE:MGA) announced the production of 5,000 Ocean SUVs from their Austria-based plant. The companies are aiming for an annual target of 28,000 units, marking a significant increase from their earlier guidance.
The announcement comes at a time when Fisker's stock has experienced a year-on-year drop of 33%. However, the recent trading session saw a reversal in the trend with a 3.4% rise. The company's cash preservation strategy as a contract manufacturer has allowed it to limit its expenditure to $1.2 billion.
This financial approach adopted by Fisker sharply contrasts with that of Rivian Automotive (NASDAQ:RIVN), which has reported an outlay of $13.5 billion, as per commentary from Barron's and MarketWatch.
Fisker's strategy of functioning as a contract manufacturer has allowed it to maintain its finances effectively while pursuing ambitious production targets. The recent boost in the production of Ocean SUVs is expected to contribute significantly towards achieving the revised annual target.
The strategic partnership between Fisker and Magna International continues to bear fruit as they ramp up production in their Austria-based plant. Despite the challenges posed by the global market, both companies remain committed to achieving their increased production targets for the year.
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