LOS ANGELES - Fisker Inc. (NYSE: NYSE:FSR), an American electric vehicle manufacturer, has announced the expansion of its dealer network by signing two new partners who will establish three new locations in the United States. The company's Dealer Partnership model, which was introduced to enhance customer experience and dealer operations, has now attracted a total of 12 partners across the US and Europe.
The new dealerships, Fisker Albany in New York, Fisker Jacksonville in Florida, and Fisker Indianapolis in Indiana, are part of Fisker's strategic shift from direct sales to a dealership model. This transition aligns with the company's asset-light business model and aims to facilitate the delivery of the Fisker Ocean SUV and future vehicle models.
Fisker's Dealer Partnership model offers no-haggle pricing, where permitted, and aims to provide customers with superb service. For dealers, the model promises larger market territories, which can help them maintain competitive pricing without concern for local competition. According to Fisker, this approach benefits customers, dealers, and the company itself.
The interest from over 250 dealers in North America and other regions in the Dealer Partnership model underscores the growing demand for electric vehicles and Fisker's brand. The company is currently delivering the all-electric Ocean SUV, which starts at $38,999 and boasts an EPA estimated range of up to 360 miles, positioning it as a leader in its class for range and sustainability.
Fisker emphasizes the Ocean SUV's sustainability credentials, highlighting its use of recycled and bio-based materials, production in a carbon-neutral facility, and the integration of rooftop solar panels, which can add up to 1,500 miles of range per year under ideal conditions.
Henrik Fisker, Chairman and CEO of Fisker, expressed excitement about the confidence dealers have in the Ocean SUV's sales potential, citing its competitive nature and class-leading features.
The announcement of the new dealer partnerships is based on a press release statement from Fisker Inc.
InvestingPro Insights
In light of Fisker Inc.'s (NYSE: FSR) expansion through its Dealer Partnership model, it's important to consider the company's financial health and market performance. Fisker's market capitalization stands at $362.68 million, reflecting the market's current valuation of the company. Despite the positive news about dealership expansion, Fisker operates with a significant debt burden and may have trouble making interest payments on its debt, as indicated by InvestingPro Tips. This could impact the company's ability to sustain its dealership model and expansion plans in the long term.
From a performance standpoint, Fisker's stock has experienced a significant return over the last week, with a price total return of 21.47%. However, this short-term gain contrasts with a longer-term performance that has seen the stock fall significantly over the last year, with a price total return of -90.88%. This high volatility is characteristic of Fisker's trading pattern, which is another key point for potential investors to consider.
On the operational side, analysts anticipate sales growth in the current year, which could be a positive sign for the company's future revenue streams. Yet, it's crucial to note that Fisker is quickly burning through cash, and with gross profit margins in the negative at -44.55%, the company's profitability remains a concern.
For those interested in a deeper analysis, there are 19 additional InvestingPro Tips available that can provide more insight into Fisker's financial and operational outlook. To access these insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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