CEO Henrik Fisker told analysts on a conference call that Magna was ready to produce 20 cars a day, with a “strong” ramp-up in the second quarter.
The company had restricted production “on purpose,” he said, as it expects testing for homologation — the certification for roadworthiness — to be complete by March. That will be followed by regulatory approvals and deliveries.
Helping Fisker sustain demand is its attractive pricing. Its Ocean SUV starts at $37,499 compared with the Model Y from Tesla that retails for at least $54,990 after recent price cuts. Rivian Automotive Inc’s SUV is priced around $78,000.
Lucid Group Inc., which sells its Air Pure sedans for $87,400, forecast lower-than-expected 2023 production last week and reported a major drop in orders during the December quarter.
Fisker said reservations for the first model of Ocean rose to more than 65,000 as of Feb. 24, from over 62,000 at the end of October.
“We were well-priced from the beginning,” Fisker told Reuters. “That’s something that, I think, now is bearing fruit.”
The company also forecast a gross margin range of 8-12 percent and positive earnings before interest, tax, depreciation and amortization this year, driven partly by lower upfront costs as Fisker, unlike its peers who make their own cars, depends on contract manufacturing.
Fisker, which expects expenses of up to $610 million this year, said it had cash and cash equivalents of $736.5 million at the end of December, down from $824.7 million a quarter earlier.
The company, however, reported a wider-than-expected quarterly loss. Its net loss stood at 54 cents per share, compared with analysts’ average estimate of a 42-cent loss, according to IBES data from Refinitiv.