Fisker Inc And Foxconn Get It Together For $30,000 PEAR EV
Personal Electric Automotive Revolution. PEAR, ergo PEAR EV. This is the name given to a $30,000 EV, a joint collaboration with Fisker Inc and Foxconn. Yes, Foxconn the maker of computer chips and iPhones among other consumer electronics. Fisker Inc has become an expert in making bold announcements with very little to show for it. The PEAR EV is yet another product announcement with more questions than answers. The plan is to produce 250,000 units per year when production begins in 2023 if it does at all. So let us take a step back. In two years Fisker Inc and Foxconn will have in place all the tooling, the manufacturing capacity, the component supply chain, and a fully trained workforce to manufacture 250,000 PEAR EVs per year.
It isn’t going to happen, especially for a new start-up company. Start-up companies often incorporate the term “disruptive” into their business plans. Doing so appeals to and attracts investors with too much money and time on their hands. But Fisker Inc’s plan appears to be disruptive to its very existence. One only has to take a look at the Fisker Ocean, pre-orders amount to around 14,000 thus far. The company has an annual target of 50,000 units per year.
A partnership with independent automotive contract manufacturer Manga Styr should allow Fisker Inc to meet the objectives set out for the Ocean SUV EV. Remarkably, Fisker Inc has not yet built any cars to date. The company is far busier preparing to float on the stock market, which it did in 2020. That alone raised over $1 billion purely because the EV market is the hottest selling ticker-tape right now.
And the stock market flotation also made a billionaire of the company’s founder, Henrik Fisker. Fisker Inc, big on public announcements because they know stock markets are driven by one thing… confidence. By making a confident announcement the share price will rise. The analytical data-driven side is purely to give the impression that stock market traders are not gulible.
The irony is that there is no metric to measure stock market confidence. Investors are simply placing bets, often with other people’s money. Fisker Inc is riding a wave of stock market confidence. As with all waves, Fisker will eventually come crashing onto the beach. We’ll give it 3-5 years from now before surf’s up… dude.