LOS ANGELES - Fisker Inc. (NYSE: NYSE:FSR), an electric vehicle manufacturer, has initiated a strategic transition from direct sales to a Dealer Partnership model, signing Mills Auto Group as its inaugural US dealer partner. This move is part of Fisker's broader strategy to scale up operations for its Fisker Ocean SUV and future vehicle models.
The announcement came during Fisker's first Open House event at its Manhattan Beach headquarters on Tuesday, where CEO Henrik Fisker outlined the benefits of the new dealer model. The partnership with Mills Auto Group will see the opening of three Fisker dealer locations, with vehicle deliveries set to begin in February.
Fisker's pivot to the Dealer Partnership strategy, announced on January 4, 2024, aims to provide customers with no-haggle pricing, superior service, and larger market territories for dealer partners. This approach is expected to foster higher sales volumes and aligns with the company's asset-light business model, facilitating the ramp-up of vehicle production.
Over 200 dealers across North America and Europe have expressed interest in the partnership, and Fisker anticipates signing additional dealers after the National Automobile Dealers Association Show in Las Vegas from February 1-4.
The Open House event also served as a platform for Fisker to showcase its design, sustainability, and innovation credentials to potential dealer partners. Attendees had the opportunity to experience Fisker's product lineup, including the Ocean SUV, Alaska pickup truck, PEAR crossover SUV, and Ronin super GT convertible.
Fisker's all-electric Ocean SUV, priced from $38,990 in the US, boasts an EPA-estimated range of up to 360 miles, the longest in its class for a new electric SUV. The Ocean also claims the lowest published carbon footprint for an electric SUV, incorporating over 110 lbs. of recycled and bio-based materials and featuring rooftop solar panels for additional range.
This strategic dealership expansion is based on a press release statement and marks a significant step in Fisker's growth as it seeks to establish a stronger foothold in the competitive electric vehicle market.
InvestingPro Insights
In light of Fisker Inc.'s latest strategic move to partner with dealerships, investors and potential stakeholders might be interested in the company's current financial health and market performance. According to real-time data from InvestingPro, Fisker's market capitalization stands at a modest $444.69M, reflecting the size of the company within the electric vehicle sector. The data also shows a staggering revenue growth of 94,872.73% for the last twelve months as of Q3 2023, which could be indicative of the company's rapid scale-up in operations and market reach. Despite this, Fisker operates with a significant debt burden, as evidenced by a negative P/E ratio of -0.61, and analysts do not anticipate the company will be profitable this year.
InvestingPro Tips suggest that Fisker's stock trades with high price volatility and has experienced a considerable decline over various timeframes, including a 50.14% drop in the last month and an 88.29% fall over the last year. This could be of interest to investors looking for potential buying opportunities or those considering the risk factors associated with the stock. It's also worth noting that Fisker does not pay a dividend, which might influence investment decisions for those seeking income-generating assets.
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