Fisker vs Tesla: Two Very Different Paradigms

I was surprised to learn that the long-awaited Fisker Karma is now priced around $100,000 US – almost double the initial estimate. Why the disparity? Henrik Fisker is a car guy, with almost two decades of experience in the industry. And he’s hired car guys, from production to distribution. While both Tesla and Fisker have received government loans to support the production of alternative powered automobiles, they are very different animals. Tesla is a true Silicon Valley tech company, and its success is more the rule than the exception; whereas Fisker is an automobile company, populated with auto industry leadership who think and act like car manufacturers. Which is perplexing when it is Tesla that has been primarily on budget with its roadster and model S, if not on schedule. True, the Tesla and Karma use state of the art electric power technology, but the fundamental components of each car don’t significantly deviate from their gasoline counterparts. The Roadster is cleverly based upon the chassis of the Lotus Elise. The Model S I’m not privy to. Fisker uses tier one suppliers like GM for its engine and various other components, such as the electric power-train made by Quantum Fuel Systems Technologies. Perhaps the X factor is that Tesla is accustomed to creating new products based upon new technology, and that business model is not new to them. Whatever the reason, I’m hoping that both companies will see success, because Americans need alternatives, even if they don’t fully realize that yet. But my money is on Tesla. Their core competency is clearly the electric power train – the primary value prop and secret sauce of any electric car. This will allow them to partner and license in order to reach scale on their investment.

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