Fisker Working on Low-Cost Model

Model S envy? Maybe. Don't worry, I'd be jealous too Fisker. Tesla has been capturing all the headlines as of late with the Model S while Fisker, who is farther along on the journey to production, has been avoiding the limelight.

Fisker has made it clear, espessially recently, that a lower-cost model was always in the future plan. A higher-end vehicle was needed to help subsidize some of the cost at the beginning. Even given the high cost of earlier entry that usually impairs new technologies, I'm impressed with the price that Fisker is able to offer the Karma.

It certainly seems like something that will catch on with enough well-heeled customers. $87,900 for a beautiful, 4-door sedan with a 50-mile electric only range, available very soon? Sounds good to me, at least until the Model S comes out. Apparently others agree, as Fisker has gotten 1,300 deposits of $5,000 for the Karma, raising $6,500,000.

Fisker is going all-in with the range-extended method, betting that is the way consumers will go if given the choice. They seem to be hitting all their goals and are on track for Karma's to start rolling off the production line this year. In fact, they just completed an $85 million round of private investment capital, something Tesla hasn't been able to do as of late.

That's a big feat and should see the Fisker Karma to production (and therefore profitability) as well as starting the development of the low-cost model. Investors must see something they like at Fisker. Recent news has only given me more confidence in Fisker's ability to deliver. They continue to attract private money and orders.

Fisker has also applied for Department of Energy loans, like Tesla, to speed up the development of it's low-cost model. They haven't disclosed how much they are seeking under the program. With it, they say the model can reach the market in around 2 years or less.

So with the recent funding announcement, dealer signups and orders, Fisker is charging ahead. Hopefully they'll both get Department of Energy loans and we'll see the rivalry continue.