Fisker pivots to hybrid strategy of direct sales plus dealer partners offering ‘no haggle pricing’

Fisker Inc. has announced a new EV sales strategy that remains asset-light but can help boost sales of its flagship Ocean model. This morning, Fisker shared plans to adopt a network of approximately 100 dealer partners in addition to its direct sales model.

Fisker Inc. ($FSR) is already looking to turn over a new leaf in early 2024, following an encouraging 2023 that still landed well below original production targets. We saw the American automaker slash its output goals several times last year, most recently in early December, as it leaned down to prioritize liquidity.

The final production target sat at 10,000 annual units – a far cry from the 42,400 originally promised, but progress nonetheless. By lowering its targets (four times), Fisker was able to produce over 10,000 Ocean EVs in 2023 and deliver about 4,700 of them, sending company stock soaring.

When Fisker announced its updated production strategy to prioritize capital, it also shared that it was in “advanced discussions” with several automakers about possible strategic partnerships, with more details to come in 2024.

While we have yet to catch wind of any OEM partnerships, Fisker has confirmed a new network of dealer partners across North America and Europe.

Fisker announces dealer partners, beginning sales in Q1

Fisker shared that it has been in discussions with potential dealers since November 2023 and is now putting the (Ocean) wheels in motion to establish a partner network of about 100 dealers across North America and Europe.

Combined with its existing direct sales model, Fisker hopes its dealers can take advantage of larger market territories with less local competition, enabling no-haggle pricing (where permitted). Fisker Inc. chairman and CEO Henrik Fisker spoke:

As we saw throughout 2023, the EV market has changed dramatically. As a high-growth
startup, Fisker is transforming its strategic efforts by putting in place the brand accessibility and sales channels required to satisfy increasing demand for the Fisker Ocean and to prepare for launch of additional future models. As a result, we are evolving our business model and intend to add as many as 50 dealer partners in the US and Canada and a similar number of dealer locations in Europe this year. In keeping with our asset light strategy, I expect the Dealer Partnership model should enable Fisker to expand its sales and delivery network at a faster pace.

Fisker says it does not intend to require these new dealer partners to make any major or expensive changes to their existing facilities, helping limit the lead time before EV sales and service can commence. As for Europe, Fisker says it will follow the popular agency model and plans to sign agreements with sales and distribution partners in those respective markets while continuing direct sales.

Lastly, Fisker shared expectations of dealer partners receiving their first electric vehicles by the end of Q1 2024 and plans to have all those initial partners in place when its higher-volume vehicle models like the PEAR arrive.