Fisker Inc., the electric vehicle (EV) startup, is facing delays in delivering its debut electric SUV, the Ocean, to customers due to ongoing software integration issues. The company has more testing and troubleshooting to do with its SUV, according to two sources who declined to be named. The software in the vehicle is currently prone to glitches, and the issues could take several months to resolve. Due to this, some vehicles are only using a more basic software that limits their speed.
Fisker has denied the allegations, stating that its vehicles will be updated over-the-air this year after launching with a basic driver-assistance system. The company has also clarified that the Ocean can be driven at normal speeds and categorically denied that it is limited to low speeds.
Following the news of the software issues, Fisker has cut its Ocean production forecast for this year by at least 15%, citing changes to timelines for regulatory approvals and supplier readiness. The company is now expecting to produce between 32,000 and 36,000 vehicles, down from its previous estimate of 42,400.
Fisker's contract-manufacturing subsidiary in Austria, Magna International, declined to comment on the matter and directed all questions to Fisker. The company delivered its first Ocean last week to a customer in Denmark, but it is already on its way back to Magna's plant in Austria due to the software issues, rendering the SUV inoperable.
The company has previously stated that it was having issues with regulatory approvals, and in February, it anticipated that testing for the US and Europe would be completed in March. However, European regulators certified the Ocean in late April, and the company is now expecting approvals from the US Environmental Protection Agency and California Air Resources Board this month, with deliveries to start in June.
Fisker went public through a reverse merger in 2020 and reported revenue of about $198,000 for the first quarter, falling short of the $4.64 million average estimate of analysts surveyed by Bloomberg. Last year, the company said Magna could make as many as 50,000 Oceans in 2023, while reservations for the SUV have hovered around 65,000.
Even established automakers struggle to make the jump from presenting a slick prototype to production. Tesla famously went through "production hell" ramping up output of its Model 3 sedan, while German auto giant Volkswagen AG has encountered software problems in its new EVs and has tapped a new leader to oversee its Cariad division.