Fisker Issues Statement on NHTSA Preliminary Evaluation
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Insights
The preliminary evaluation by the National Highway Traffic Safety Administration (NHTSA) into the reported braking issues with the 2023 Fisker Ocean is a critical step in ensuring consumer safety and maintaining brand trust. Automotive safety analysts closely monitor such investigations as they can lead to recalls, which have significant financial implications for manufacturers. In this case, Fisker's proactive response with an Over-the-Air update signifies an adaptive approach to vehicular software issues, a growing trend in the industry. It's essential to consider how effectively the update resolves the issue and whether it mitigates any potential for harm or legal action. The ability of a car manufacturer to address safety concerns quickly can help preserve its market reputation and avoid the costs associated with physical recalls.
From a market perspective, Fisker's swift action to correct the reported braking issue via an Over-the-Air software update could be seen as a positive indicator of the company's agility and customer service responsiveness. In the electric vehicle (EV) market, where competition is intense, such responsiveness can influence consumer perception and brand loyalty. It is also indicative of the EV industry's shift towards software-centric solutions to hardware problems. However, the market will be watching closely to see if this issue affects consumer confidence in Fisker and consequently, its sales and stock performance. Market research analysts would be interested in tracking consumer sentiment and any changes in sales trends following this announcement.
For investors, the financial implications of safety investigations can be substantial. A financial analyst would evaluate the potential costs associated with such an investigation, including the impact on warranty reserves, potential for reduced sales and legal liabilities. It is noteworthy that Fisker states their brake system meets or exceeds performance requirements, which could mitigate some investor concerns. However, the long-term financial impact will largely depend on the outcome of the NHTSA's evaluation and the efficacy of the software update. Shareholders should monitor the situation for any signs of escalating costs or damage to the brand's value.
“Fisker is fully cooperating with NHTSA on this matter.”
The Fisker Ocean brake system uses both friction braking and regenerative braking. In December 2023, Fisker responded to customer feedback and issued an Over-the-Air update (Version 1.10) to the regenerative system that improved the customer experience when traveling over bumps and uneven surfaces, resolving the issue. The Fisker Ocean brake system meets or exceeds all US and international performance requirements.
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Forward-Looking Statements
This press release includes forward-looking statements, which are subject to the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "feel," "believes," “expects," "estimates," "projects," "intends," "should," "is to be," or the negative of such terms, or other comparable terminology and include, among other things, the quotation of our CEO, the statements regarding the planned launch timing, pricing, delivery, production, and estimated range of the Fisker Ocean, the planned timing of the opening of Fisker facilities, the Company's future performance, expansion of operations, software updates, and other future events that involve risks and uncertainties. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein due to many factors, including, but not limited to: Fisker's limited operating history; Fisker's ability to enter into additional manufacturing and other contracts with Magna or tier-one suppliers in order to execute on its business plan; the risk that OEM and supply partners do not meet agreed-upon timelines or experience capacity constraints; Fisker may experience significant delays in the design, manufacture, regulatory approval, launch and financing of its vehicles; Fisker's ability to execute its business model, including market acceptance of its planned products and services; Fisker's inability to retain key personnel and to hire additional personnel; competition in the electric vehicle market; Fisker's inability to develop a sales distribution network; and the ability to protect its intellectual property rights; and those factors discussed in Fisker's Annual Report on Form 10-K, under the heading "Risk Factors", filed with the Securities and Exchange Commission (the "SEC"), as supplemented by Quarterly Reports on Form 10-Q, and other reports and documents Fisker files from time to time with the SEC. Any forward-looking statements speak only as of the date on which they are made, and Fisker undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240119804643/en/
European Media:
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US Media
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Fisker Inc. Communications:
Matthew DeBord
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mdebord@fiskerinc.com
Franziska Queling
Regional Head of Public Relations Europe
fqueling@fiskerinc.com
Investor Relations:
Eric Goldstein
Head of Investor Relations
egoldstein@fiskerinc.com
Source: Fisker Inc.
FAQ
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Did the update resolve the braking issue?
Does the Fisker Ocean brake system meet performance requirements?
