Fisker Inc (NYSE:FSR) generated revenue of $41,000 in the fourth quarter on the back of merchandise sales, but investors remain focused on reservations and production timelines.
Fisker CEO Henrik Fisker highlighted the company's accelerating reservation numbers during the company's fourth-quarter conference call.
What Happened: Fisker reported more than 30,000 reservations for the Ocean, the company's flagship electric SUV.
The figure has surpassed 31,000, the CEO said on the earnings call Wednesday.
After surveying reservation holders, the company said about 80% plan to purchase one of the top two trim levels for the Ocean. Fisker said this amounts to potential revenue of about $1.7 billion.
"This year has just been taking off extremely fast," Fisker said before confirming the company is still on target for an Ocean start-of-production date of Nov. 17.
"The acceleration of reservations has also really taken off this year," he said.
Fisker reported having $6.3 million in reservation deposits at the end of 2021. At $250 per deposit, Fisker likely had a little more than 25,000 reservations at the end of the year, which means it has already piled on another 6,000 reservations in the last six weeks.
Reservations have increased 400% on a daily basis year-over-year, according to the CEO. He attributes the increase to customer recognition that the vehicle will actually be released this year.
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"I'm really excited about flying over next week to actually get into an Ocean and see it come off the prototype line," Fisker said.
The EV company confirmed that it has started producing prototypes at the assembly facility in Austria, operated by Magna International Inc (NYSE:MGA).
He also said the company will offer an incredible warranty program and is able to do so because of the confidence it has in its ability to produce super high quality vehicles. He expects the warranty to help drive reservations higher as well.
"It really shows our confidence in the build quality, the technology quality and the overall durability that we expect of this vehicle," Fisker said.
The company is confident that it has carved out its own place in the EV market by packing luxury features into a lower-priced vehicle.
"There is no really cool looking SUV under $40,000, let's just make that clear," Fisker said. Competitors' electric SUVs don't come close to the range the Ocean provides, he added.
Fisker expects reservations to continue to accelerate as the company rolls out vehicles for testing and reviews: "Priority one for us is launching the Ocean."
What's Next: Fisker on Tuesday announced the company opened reservations for its second vehicle, the Fisker PEAR.
Related Link: Why Fisker Shares Are Trading Higher Today
"The PEAR looks nothing like the Ocean," Fisker said on the conference call. "In fact, it looks nothing like any other vehicle in the world and I'm even hesitant to call it a car. I call it a mobility device and the reason is that this vehicle is so different in how it looks, how it's going to function."
Fisker said he is keeping the design private in order to avoid revealing it to the competition.
The Fisker PEAR, or Personal Electric Automotive Revolution, is a five-passenger, all-electric vehicle starting at $29,900. Customers can reserve the vehicle with a $250 deposit.
FSR Price Action: Fisker has traded as low as $9.61 and as high as $31.96 over a 52-week period.
The stock was down 2.09% at $12.63 Thursday afternoon.
Photo: courtesy of Fisker.
