Fisker to ramp up Ocean production in Q4, can it hit its already revised annual guidance?
Fisker Inc. has shared intentions to increase US deliveries of its flagship Ocean SUV while simultaneously ramping up overseas production to 300 units per day. While the scaling is encouraging news, can the American automaker still hit its 2023 production guidance after lowering its target once already?
Fisker Inc. is a mere two months away from the first anniversary of commencing production of its Ocean EV in Austria with contract manufacturer Magna Steyr. Since then, production has slowly but surely ramped up but is still nowhere near the pace the American automaker had originally hoped.
When Fisker shared its production guidance in Q3 of 2022, we said it was ambitious, but having a manufacturing juggernaut like Magna in its corner left more room for optimism than usual. The original guidance was to produce 42,400 units by the end of 2023 at the following pace:
- Q1 2023: 300+ units
- Q2: 8,000+ units
- Q3: 15,000+ units
- Q4: Remainder to reach 42,400 unit goal
By the end of Q1 2023, Fisker had only produced 55 Ocean EVs, delivering merely two of them. As a result, Fisker lowered its Q2 target from 8,000 units to between 1,400 and 1,700 and lowered its annual guidance to the ballpark of 32,000 to 36,000 EVs built. By Q2, Fisker’s numbers had jumped significantly (1,022 units produced), but still well short of the 1,400 target and not even in the same area code as the original mark.
Following its Q2 report, reality started to set in as Fisker once again lowered its annual production guidance to 20,000 to 23,000 Ocean SUVs. Today, Fisker says it will further ramp production in Austria but will really need to get cooking to hit its once- twice-revised annual target.
Fisker looks to enter production sprint in Q4
According to Fisker Inc., it is aiming to increase its production output with Magna Steyr from 180 units per day to approximately 300 in Q4. As of September 4, Fisker had built 3,123 Ocean EVs for customers – that’s progress, by contrast to the start of the year, but a huge miss compared to its original output goals laid out last year.
Fisker says over 450 Ocean EVs have been or are on their way to be delivered to US customers, and another 1,500 vehicles are anticipated to arrive by ship to the States this weekend. Chairman and CEO Henrik Fisker spoke:
Rest assured what we are pushing out logistic providers and teams to get Fisker vehicles in the hands of our exceptional customers. Our early customers have been with us as pioneers, giving us valuable feedback to make our car even better. I will never forget the commitment that these customers have shown. The result for their feedback is now showing up in our vehicles!
Generally speaking, amendments to vehicles based on driver feedback usually take place before customer deliveries begin, but this is a young company trying to move quickly – and the growing pains are discernible. Luckily, EVs are more easily fixed via OTA updates.
Looking ahead, Fisker anticipates receiving all 5,000 of the planned Ocean One launch editions from Magna by the end of the month, with customer deliveries stretching into September. If Fisker and Magna are indeed able to ramp up production to 300 units per day, it could potentially build 21,000 Ocean EVs with weekends off – and much more than that if Magna’s crews are assembling seven days a week.
That would get Fisker through its eraser-marked production guidance for the fiscal year. All eyes will be on the company’s Q3 report before we enter the home stretch here in 2023.
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The Stripe logo on a smartphone with U.S. dollar banknotes in the background.
Budrul Chukrut | SOPA Images | LightRocket via Getty Images
Stripe cut 300 jobs, representing about 3.5% of its workforce, mostly in product, engineering and operations, CNBC has confirmed.
The payments company, valued at about $70 billion in the private markets, still expects to increase headcount by 10,000 by the end of the year, which would be a 17% increase, and is “not slowing down hiring,” according to a memo to staff from Chief People Office Rob McIntosh. Business Insider reported earlier on the cuts and the memo.
A Stripe spokesperson also confirmed to CNBC that a cartoon image of a duck with text that read, “US-Non-California Duck,” was accidentally attached as a PDF to emails sent to some of the employees who were laid off. Some of the emails mistakenly provided affected employees with an incorrect termination date, the spokesperson said.
McIntosh sent a follow-up email to staffers apologizing for the “notification error” and “any confusion it caused.”
“Corrected and full notifications have since been sent to all impacted Stripes,” he wrote.
In 2022, Stripe cut roughly 1,100 jobs, or 14% of its workers, downsizing alongside most of the tech industry, as soaring inflation and rising interest rates forced companies to focus on profits over growth. The Information reported that Stripe had a few dozen layoffs in its recruiting department in 2023.
Stripe’s valuation sank from a peak of $95 billion in 2021 to $50 billion in 2023, before reportedly rebounding to $70 billion last year as part of a secondary share sale. The company ranked third on last year’s CNBC Disruptor 50 list.
In October, Stripe agreed to pay $1.1 billion for crypto startup Bridge Network, whose technology is focused on making it easy for businesses to transact using digital currencies.
Brothers Patrick and John Collison, who founded Stripe in 2010, have intentionally steered clear of the public markets and have given no indication that an offering is on the near-term horizon. Total payment volume at the company surpassed $1 trillion in 2023.
WATCH: Early Bridge investor weighs in on $1.1 billion Stripe deal
Thinking about upgrading your EV? Rivian (RIVN) launched a new promo on Tuesday, offering up to $6,000 to upgrade your R1S or R1T. Here’s how you can snag some savings.
Rivian R1S and R1T upgrade deal offers up to $6,000
Rivian delivered over 51,500 vehicles last year as the EV maker gains momentum. Although it was only slightly higher than the ~50,100 delivered in 2023, Rivian is expected to see even more growth this year.
After shutting down its Normal, IL manufacturing plant last April and renegotiating supplier contracts, Rivian has seen “significant cost improvements,” according to CEO RJ Scaringe.
Rivian also began delivering its next-gen R1S and R1T models last year. The new Large and Max battery packs have redesigned modules and more efficient packaging, “making them easier to manufacture and service.” For example, Rivian’s new EVs use seven ECUs, down from 17 in the first-generation R1T and R1S.
With new plant upgrades, reworked supplier contracts, and more efficient vehicles, Rivian is now passing the savings on to customers.
Rivian introduced a new promo on Tuesday, offering up to $6,000 to upgrade your R1T or R1S. The bonus amount varies by trim:
- Tri with Max battery: $6,000 USD / CAD 8,600
- Dual with Max battery and Performance upgrade: $4,500 USD / CAD 6,500
- Dual with Max battery: $3,000 USD / CAD 4,300
The offer is for current R1T or R1S owners or lessees in the US and Canada. Rivian launched the new promo on January 21, and it runs through March 31, 2025.
After you purchase or lease a qualifying vehicle, Rivian will apply a discount toward the MSRP. You must take delivery by March 31, 2025. In the fine print, Rivian stated, “You must request a trade-in estimate to qualify for this offer, but trade-in of a vehicle is not required.”
Any other models are excluded from the offer. These include Dual Standard configurations, Dual with Large battery configurations, custom builds, demo vehicles, and pre-owned vehicles.
The new offer follows Rivian’s previous upgrade promo introduced last October, giving qualifying gas-powered vehicle owners or lessees up to $3,000.
Check out the Rivian R1 Shop to view eligible models. You can see eligible Rivian R1S here and R1T models here.
Electrek’s Take
Rivian’s R1S was already the tenth best-selling electric vehicle in the US last year, with nearly 27,000 models sold. With more driving range and power at a lower cost, the electric SUV could see even more demand in 2025.
Then again, with the arrival of new luxury electric SUVs, like the Jeep Wagoneer S and Volvo EX90, Rivian will face more competition in the US.
Rivian’s latest promo comes as the Company looks to carry the momentum from the end of 2024 into the new year. The EV maker is offering other deals, including 1.99% APR for 60 months on the R1 Dual with a Max Battery and Performance upgrade.
Even if you are not eligible for the promo, we can still help you find deals on Rivian’s electric SUV in your area. You can use our links below to view offers on the Rivian R1S and R1T near you today.
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