Henrik Fisker, the automotive designer celebrated for his aesthetically striking creations for Aston Martin and BMW, is once again venturing into the startup world, this time with a bold ambition: a $40,000 electric SUV slated for production by 2021. This announcement positions Fisker directly in competition with Elon Musk and Tesla, whose Model Y is expected to debut around the same timeframe. This move towards a more accessible SUV marks a significant shift from Fisker’s previous endeavors, signaling a strategic pivot towards a broader market segment.
This unveiling comes a year after Fisker announced intentions to develop the EMotion, a high-end electric sports car. However, in a recent interview, Fisker articulated an evolution in his business philosophy since the era of the Fisker Karma, a $100,000 luxury hybrid that faced production challenges and lukewarm reception. The Karma, despite its initial allure and 2008 debut, only reached production in 2011. It garnered mixed reviews, notably a breakdown during Consumer Reports testing, and encountered owner complaints regarding reliability and build quality, ultimately selling fewer than 1,800 units across the US.
Fisker Automotive, the company behind the Karma, headquartered in Orange County, filed for bankruptcy in 2013, with its assets acquired by Chinese auto parts manufacturer Wanxiang Group in 2014. Fisker now asserts that “lessons learned” from this experience have guided his decision to prioritize a more versatile and affordable SUV before pursuing luxury sedans.
“This time we wanted to go directly to a volume segment where we can have a long-term business where you can actually make money,” Fisker stated. He emphasized the shifting market dynamics, noting the plateauing sedan market and the burgeoning SUV segment, which is projected to constitute over 65% of new vehicle sales by 2022. Fisker highlighted a strategic approach focused on efficient partnerships and cost management, drawing on past experiences to refine his business model. “It’s about partnering in the right places, not spending hundreds of millions where you don’t have to. Now I have this experience and lessons learned and have figured out what is the best way to do this.”
Fisker’s career trajectory is marked by a diverse portfolio of projects and collaborations. Prior to his startup ventures, he garnered acclaim for his design contributions at Aston Martin and Jaguar, where he penned the iconic Aston Martin DB9 and BMW Z8. He also consulted with Tesla during the early stages of Model S design. In 2007, he lent his design expertise to the Artega GT, a two-door sports car for German manufacturer Artega Automobile, produced for a limited three-year period.
In 2009, Fisker showcased the Karma Sunset convertible, followed by the Fisker Surf hatchback in 2011, both variations of the Karma hybrid that ultimately did not reach production. Following the bankruptcy and acquisition by Wanxiang, a revamped Fisker Karma, rebranded as the Karma Revero and independent of Henrik Fisker, was launched in 2016. The Revero, visually similar to the original Karma, is currently available for purchase.
Beyond automotive ventures, Fisker’s diverse endeavors include yacht design collaborations with Benetti, a lifestyle brand encompassing apparel and merchandise, forays into motorcycles and customized Mustangs, and the establishment of VLF Automotive in partnership with ex-Boeing executives and Bob Lutz of General Motors, producing niche automobiles. This wide-ranging portfolio, while showcasing Fisker’s creative energy, also raises questions about focus and execution, particularly in the context of his latest automotive endeavor.
Industry analysts express cautious skepticism regarding Fisker’s new SUV venture. Tim Urquhart, principal automotive analyst at IHS Markit, points to the challenges of credibility and momentum given Fisker’s past ventures. “His past problems mean there’s a huge lack of momentum and credibility in the industry, in terms of what he can deliver on,” Urquhart commented. He also noted the shifting priorities, from the EMotion sports car to the SUV, raising questions about strategic consistency. “He’s already said he’s going to build a new sports car, now he’s turning around and saying the SUV will be first.”
Despite the skepticism, the proposed specifications of the Fisker Suv are noteworthy. The as-yet-unnamed Fisker SUV, developed under the new entity Fisker Inc., is slated to feature an 80-kilowatt-hour lithium-ion battery pack, dual electric motors, and optional four-wheel drive, targeting a 300-mile range on a single charge. Variant models are planned, including a “California Edition” with an open-top design reminiscent of a Jeep, activated electronically. Fisker indicated a drivable prototype would be ready by the end of 2019.
Securing a production facility is a critical next step for Fisker, who envisions an ambitious production volume of 200,000 Fisker SUVs annually by 2025. He mentioned ongoing discussions with potential locations across five states, identifying the company as “California-based.” While stating the involvement of strategic partners, Fisker has not yet disclosed their identities.
The challenge for Fisker is to overcome the perception of repeated promises without consistent delivery. The electric SUV market is rapidly becoming crowded, with established automakers like Audi and Jaguar already offering models, and BMW and Mercedes-Benz poised to enter the market. Tesla’s Model X is currently available, and the newly announced Model Y, with a starting price comparable to Fisker’s target, further intensifies the competition. “We felt now was a good time to announce this, now that Tesla showed their cards,” Fisker explained, suggesting a strategic response to the evolving competitive landscape.
Kevin Tynan, senior autos analyst for Bloomberg Intelligence, characterizes Fisker’s journey as a mix of successes and near misses. He likens Fisker’s current position to “taking off his tracksuit while all the other volume players are already running the race,” highlighting the head start established automakers and Tesla already possess in the electric SUV segment.
Fisker’s ambitious claim of achieving profitability in the first year, with “double-digit growth built into the business model,” is particularly noteworthy given the capital-intensive nature of automotive manufacturing. Start-up automakers typically require billions of dollars in investment and years to achieve profitability, if at all. Tesla, despite its current market dominance, took years to reach consistent profitability.
Urquhart acknowledges Tesla’s execution track record, noting, “At least with Elon, sometimes the timelines are a little bit hazy, but he has always pretty much delivered pretty soon after. Eventually, Elon gets there. Henrik needs to eventually get there. He needs to show the industry, show customers, show the world, that he can do it.”
Fisker’s go-to-market strategy for the Fisker SUV includes online sales and physical “experience stores” in major cities, mirroring the approaches of Polestar and Tesla. He also envisions a network of 1,000 service centers offering maintenance and repair services for electric vehicles nationwide. Fisker asserts that production costs for the new SUV will be significantly lower than the Karma, citing strategic partnerships, reduced marketing expenses, and advancements in battery technology and component sourcing.
The Fisker EMotion logo displayed at the vehicle’s 2018 unveiling, representing Fisker’s ongoing ambition in the electric vehicle market.
Fisker acknowledges the evolving supplier landscape in the EV industry, contrasting it with the challenges faced during the Karma era. “When Fisker and Tesla started, we had to do everything ourselves, whether we liked it or not,” Fisker explained. “That was extremely expensive. Just generally, we had to spend a lot more money with suppliers and in R&D. We were overcharged by all the suppliers. We had to pay for all of that stuff upfront.” He highlights the maturity of the EV supply chain, offering cost efficiencies and readily available components. “Now you have suppliers, which in the meantime have ramped up, and they have what we need. You don’t have to go out upfront and pay for all this tooling.”
Fisker perceives his past experiences, even the setbacks, as a form of brand recognition and a foundation for future success. He emphasizes existing brand awareness, established supplier relationships, and a loyal customer base from the original Fisker Karma days, which included celebrity owners like Justin Bieber, Ashton Kutcher, and Leonardo DiCaprio. Despite the competitive landscape, Fisker underscores his track record of bringing a vehicle to market, a feat few startups achieve. “I’ve put a car on the road,” Fisker concluded. “That’s quite a big task—not a lot of people actually get to that point. With the other startups, they don’t have the lessons learned, they are just imitating Tesla and just burning through millions. I really took the lessons learned the first time around. At the end of the day, we need a sustainable business that makes money.”
