Electric-vehicle startup finds direct-to-consumer sales too costly

  • Fisker is ditching its direct-to-consumer sales model in favor of using traditional dealerships
  • The company found the direct sales approach to be too expensive
  • Fisker struggled to deliver cars to buyers quickly in 2023
  • The company is in talks with U.S. dealers and aims to sign up at least 50 this year

Fisker, the electric-vehicle startup, has decided to abandon its direct-to-consumer sales model in the U.S. and instead opt for traditional dealerships. The company found that the direct sales approach was more expensive than expected and faced challenges in delivering cars to buyers quickly in 2023. Fisker is currently in talks with U.S. dealers and plans to partner with at least 50 of them this year.

Public Companies: Fisker (FSR)
Private Companies:
Key People: Henrik Fisker (Chief Executive Officer)

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Factuality Level: 7
Justification: The article provides specific information about Fisker’s production and delivery numbers, as well as the reason for the change in sales model. However, it lacks additional context or sources to verify the claims made.

Noise Level: 3
Justification: The article provides relevant information about Fisker’s decision to abandon direct-to-consumer sales and switch to traditional dealerships. However, it lacks in-depth analysis, evidence, and actionable insights. The article also does not explore the consequences of this decision on customers or hold the company accountable for its struggles in delivering cars to buyers.

Financial Relevance: Yes
Financial Markets Impacted: The article pertains to the financial performance and business strategy of the electric-vehicle startup Fisker.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the business decision of Fisker to abandon its direct-to-consumer sales model and switch to traditional dealerships, highlighting the company’s struggles in 2023. While there is no mention of an extreme event, the financial implications for Fisker and the potential impact on its market performance are relevant.

Reported publicly: www.wsj.com www.marketwatch.com www.marketwatch.com