Tesla has ‘significant first-mover advantage’ in the electric vehicle space – but 3 smaller names are also poised to succeed as EV sales climb in 2021, CFRA says

Fisker Ocean
The Fisker Ocean.


Tesla has established a “significant first mover advantage” over new entrants in the ever-expanding electric vehicle market, but a few other smaller names stand out, according to CFRA’s Garrett Nelson.

In a note published Wednesday the senior equity analyst said Amazon-backed Rivian, Lucid Motors, and Fisker will emerge as “success stories,” as EV sales climb in 2021.

Nelson uses four categories to analyze emerging electric-vehicle manufacturers: 1) the specs (price, range, etc.) and overall attractiveness of their initial vehicle models; (2) financial considerations such as their funding sources, balance sheets, and liquidity; (3) the growth opportunity of their sub-industry; and (4) the experience and credibility of management. 

He said all three names fare well in each category. Additionally, all three automakers will be among the first to bring electric vehicles to the road, with Rivian and Lucid expected to put models on the road this year and Fisker in late 2022. 

Fisker debuted in public markets in October, while Lucid Motors announced a merger with SPAC Churchill Capital Corp. IV on Monday. Rivian is looking to go public as soon as September at a valuation of $50 billion, Bloomberg reported earlier this month. 

Nelson added that Tesla has an advantage over new entrants; citing how the company increased its US EV sales volume by over 50% last year.  

“With all the talk of increased competition from new EV models in 2020, Tesla grew its market share from an estimated ~58% share in 2019, as models like the Audi e-Tron, Jaguar I-PACE, and Nissan LEAF largely disappointed from a sales perspective,” Nelson added. 

CFRA forecasts that US EV sales will grow by over 50% to exceed 500,000 units in 2021, especially if the Biden administration passes legislation that could benefit EVs. The research firm has a “strong buy” rating on Fisker, and a “hold” rating for Tesla. 

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Fisker soars 26% after it partners with Foxconn to develop and manufacture a new electric vehicle

Fisker Ocean
The Fisker Ocean.

  • Fisker Inc. soared 26% on Wednesday after it said it will collaborate with Foxconn to develop and manufacture electric vehicles.
  • Fisker and Foxconn will develop Fisker’s second vehicle, which it expects to start production in the fourth quarter of 2023.
  • Foxconn is expected to manufacture the vehicle at annual volumes of more than 250,000.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Fisker Inc. soared as much as 26% on Wednesday after it said it entered a memorandum of understanding with Foxconn to jointly develop and manufacture an electric vehicle.

The vehicle will be Fisker’s second EV model, after its Ocean electric SUV, which is expected to be launched next year and is being manufactured in partnership with Magna.

Foxconn is best known as the Chinese manufacturer of Apple’s iPhone, and is the world’s largest electronics manufacturer.

The proposed collaboration is targeting an annual production rate of 250,000 electric vehicles, with the start of production expected in the fourth quarter of 2023. The vehicles being built by Foxconn will be sold in North America, Europe, China and India, according to Fisker. 

Fisker is staying true to its go-to-market strategy, which is comprised of designing electric vehicles, but outsourcing all of the production to contract manufacturers rather than build the vehicle itself.

“The collaboration between our firms means that it will only take 24 months to produce the next Fisker vehicle – from research and development to production, reducing half of the traditional time required to bring a new vehicle to market,” said Foxconn chairman Young-way Liu.

Both Fisker and Foxconn expect to sign a formal partnership in the second quarter. 

Read the original article on Business Insider

Fisker soars 20% after it partners with Foxconn to develop and manufacture a new electric vehicle

Fisker Ocean
The Fisker Ocean.

  • Fisker Inc. soared 20% on Wednesday after it said it will collaborate with Foxconn to develop and manufacture electric vehicles.
  • Fisker and Foxconn will develop Fisker’s second vehicle, which it expects to start production in the fourth quarter of 2023.
  • Foxconn is expected to manufacture the vehicle at annual volumes of more than 250,000.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Fisker Inc. soared 20% on Wednesday after it said it entered a memorandum of understanding with Foxconn to jointly develop and manufacture an electric vehicle.

The vehicle will be Fisker’s second EV model, after its Ocean electric SUV, which is expected to be launched next year and is being manufactured in partnership with Magna.

Foxconn is best known as the Chinese manufacturer of Apple’s iPhone, and is the world’s largest electronics manufacturer.

The proposed collaboration is targeting an annual production rate of 250,000 electric vehicles, with the start of production expected in the fourth quarter of 2023. The vehicles being built by Foxconn will be sold in North America, Europe, China and India, according to Fisker. 

Fisker is staying true to its go-to-market strategy, which is comprised of designing electric vehicles, but outsourcing all of the production to contract manufacturers rather than build the vehicle itself.

“The collaboration between our firms means that it will only take 24 months to produce the next Fisker vehicle – from research and development to production, reducing half of the traditional time required to bring a new vehicle to market,” said Foxconn chairman Young-way Liu.

Both Fisker and Foxconn expect to sign a formal partnership in the second quarter. 

Read the original article on Business Insider