{"id":28312,"date":"2021-11-22T13:03:56","date_gmt":"2021-11-22T17:03:56","guid":{"rendered":"https:\/\/henrypayne.com\/?p=28312"},"modified":"2021-11-22T13:03:56","modified_gmt":"2021-11-22T17:03:56","slug":"fisker-why-ev-startup-valuations-are-sky-high-and-going-higher-2","status":"publish","type":"post","link":"https:\/\/henrypayne.com\/index.php\/2021\/11\/fisker-why-ev-startup-valuations-are-sky-high-and-going-higher-2","title":{"rendered":"Fisker: Why EV startup valuations are sky high and going higher"},"content":{"rendered":"

Los Angeles<\/em>\u00a0\u2014 Is Fisker the next electric vehicle unicorn?<\/p>\n

The California-based EV company unveiled a final prototype here this week of its first, widely-anticipated SUV, the Ocean, with production to begin in November 2022. If Fisker, run by EV pioneer Henrik Fisker, follows the pattern of U.S. EV startups, it should be a multi-billion dollar company in a year.<\/p>\n

\"Fisker<\/p>\n
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Sister EV startups Rivian and Lucid have seen their market values roar to dizzying heights in recent\u00a0weeks after producing their first vehicles. With no revenue and one $70,000 pickup truck in its lineup, Irvine, California-based Rivian owns a market cap of $140\u00a0billion, more than General\u00a0Motors. Lucid Motor\u2019s $160k Air sedan rolled off the line last month and its market cap is now about $90\u00a0billion, more than Ford Motor Company.<\/p>\n

Subscribers:\u00a0<\/strong>LA Auto Show: Reborn Fisker unveils the Ocean EV<\/a><\/p>\n

\u201cWall Street (investors) think half of the global market will be EVs by 2030. Wall Street is betting that startup EVs automakers are going to make up most of that production,\u201d CEO Fisker said in an interview in Los Angeles just hours before unveiling the Ocean on Wednesday. Battery-electric vehicles make up under 3% of U.S. sales.<\/p>\n

Fisker\u2019s prediction is self-interested, but consistent with current trends.<\/p>\n

Despite facing competition from numerous legacy automakers in the EV space, Tesla \u2014 the first all-electric startup to enter the mainstream market in 2012 with its Model S sedan \u2014 still owns an 80% market share with a growing list of vehicles including the Model 3 sedan and Model Y and Model X SUVs. EV entries from household names like Chevy, Volvo, Audi, Porsche, BMW and Mercedes have barely dented Tesla\u2019s juggernaut, which delivered 499,550 vehicles in 2020 \u2014 an increase of 36% over the previous year in the midst of a global pandemic.<\/p>\n

Tesla\u2019s market value soared over $1 trillion this month \u2014\u00a0more than the nine largest auto companies combined.<\/p>\n

\u201cLike other startups, we are building an EV company from the ground up,” said Fisker.\u00a0“We are currently valued at $7 billion. The difference\u00a0between us and Rivian and Lucid is that we won\u2019t be in production for another year. If we hit our targets, I expect to see similar success.\u201d<\/p>\n