Fisker’s Manufacturing Strategy Is the Largest Experiment In Making EVs Affordable

David Shultz

David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.

Fisker
Fisker

I’ve spilled considerable ink on California-based electric vehicle companies like Rivian, Faraday Future, Vinfast, and Tesla. But one company that’s flown under the radar is Fisker. Backed by the charismatic auto industry legend bearing the same name, the company is planning to start delivering its first model, the Fisker Ocean, at the end of the month.

So what distinguishes Fisker from its myriad competitors? Their path to market. Specifically, Fisker has handed off the manufacturing of its upcoming EVs to partner companies Magna Steyr and Foxconn.


Shirking the responsibility of, you know, actually building your own car, comes with a host of pros and cons. Fisker’s eventual success or failure in the EV space may come down to how it balances and manages each.

From the highest level, outsourcing production lets Fisker do a couple of things. First, it allows them to get to market a bit quicker: building a factory can take years. Second, it reduces the risk and headaches that many other EV makers run into as they get manufacturing online. Magna Steyr, the manufacturer of the Ocean, is an established company with an excellent track record in the industry, assembling cars for brands like BMW, Mercedes, Jaguar. Previous reports have even revealed that the Ocean will be built on a modified version of a Magna Steyr electric vehicle platform.

The existing expertise has helped Fisker get to market quicker, and as more and more legacy automakers join the EV space, expedience may pay dividends. Avoiding the high upfront capital expenditure may have also helped the company keep their prices low. I’ve spent many paragraphs complaining about the high price of entry into the EV world. But at $37,499, the Ocean would be among the most affordable plug-in options on the market–especially in the SUV category. If the car is even close to competitive with offerings like the Ioniq 5 or the Kia EV6, that price should look very attractive to budget-conscious consumers.

The exact terms of the deal between Fisker and Magna Steyr aren’t public. But Daron Gifford, leader of Plante Moran’s Mobility Practice, says that assembly plus labor and overhead usually accounts for 15 to 20% of an automaker’s cost structure. But the price of relying on outside manufacturing is, of course, relinquishing control of how many cars you can make.

“As you scale up, you reach a point when there's more of a tendency to want to be in control of your own production,” says Stephanie Brinley, principal analyst at S&P Global Mobility. “What you risk–whether you're working with Magna or Foxconn or someone else–is that your ultimate capacity is going to depend on what they're doing.”

Gifford agrees that outsourcing manufacturing might make it difficult or cost prohibitive for Fisker to make changes to its manufacturing processes on the fly. He also points out that the process adds a lot of complexity and operational risk for the company.

“It’s going to be a management challenge,” Gifford says. “But the bigger problem on top of the management challenge is the supply chain.” Sourcing the parts from around the world, shipping everything to Magna Steyr’s plant in Graz, Austria, assembling vehicles, and then loading them onto boats to send back to the U.S. is likely both costly and slow for Fisker. “If they sourced everything in Europe, it’s a shorter supply chain, but I suspect they did not,” says Gifford.

Outsourcing to Austria also complicates the picture with regard to the Inflation Reduction Act. Biden’s new infrastructure legislation includes language that requires EVs be assembled in North America to be eligible for the full discount. As such, this would exclude the Ocean from qualifying. However, last month Magna announced its intent to set up a manufacturing plant on U.S. soil, meaning that future runs of the Ocean may be eligible for the full rebate.

This isn’t to say that Fisker couldn’t add its own manufacturing further down the line once the brand is more established. That option, according to Brinley, is certainly on the table. But as it currently stands the company is already under contract with Foxconn for its second model—the Pear. The vehicle marks theTaiwanese electronics company's first foray into automotive manufacturing. And the agreement is more difficult to assess since all that is known about the Pear is that it will be built in Foxconn’s Ohio factory.

If Fisker’s partnership with manufacturers sees considerable success, other brands may seek to emulate their model. But up to this point–at least in the EV world–no one’s yet decided to outsource production to a third party manufacturer, making Fisker’s example the largest-scale experiment of its kind. Which is why, Brinley says, we may not be able to evaluate the success of the strategy for years to come.

“It's not a sprint, it's a marathon,” she says. “I think that if you take a broader view, the winner isn't necessarily decided in the next three years. A brand could stumble at the beginning and still be just fine in a decade. But it's easier to start off with a success than with a stumble.”

🏈Snapchat’s Super Bowl Push & Apple’s New App 📲—Here’s What’s New

🔦 Spotlight

Hello, Los Angeles!

With Super Bowl LIX coming up this Sunday, the buzz isn’t just about the Chiefs vs. Eagles matchup—it’s also about how tech is shaping the experience. From Snapchat’s interactive game-day features to Apple’s latest product launch, there’s plenty happening beyond the field.

Snapchat’s Super Bowl Features

If you're watching the game, chances are you’ll be on your phone just as much as your TV. This year, Snapchat is rolling out AR Lenses, live score updates, and Spotlight challenges to make game day more interactive. Want to try on your team’s jersey? There’s a Lens for that. Need real-time updates? Snap has them covered. Attending the game in New Orleans? Live Location can help you track down friends in the crowd. As the second-screen experience becomes more ingrained in live sports, Snap is making sure it’s front and center.

Snap’s New Initiative: The Department of Angels

Super Bowl Sunday is about competition, but what happens when the challenge isn’t on the field? Yesterday, Snap announced The Department of Angels, a new initiative aimed at supporting communities recovering from disasters, offering independent funding and resources to help them rebuild on their own terms. Backed by $10 million from Snap Inc., Evan Spiegel, Bobby Murphy, and the California Community Foundation, the program shifts away from traditional corporate donations and toward grassroots, community-led recovery efforts. Could this be a model for how tech companies engage with real-world crises in the future?

Apple Wants to Change How You Send Invites

Apple is stepping into the event invite space with Apple Invites, a new app designed to make organizing gatherings simpler. Competing with platforms like Partiful and Evite, Apple’s version integrates directly into iMessage and Apple Calendar, making it an easy, built-in option for Apple users. With so many invite platforms out there, will Apple’s streamlined approach become the go-to for iPhone users, or will it simply be another tool in the mix?

Where to Watch Super Bowl LIX

The Chiefs and Eagles face off this Sunday at 3:30 PM PT on FOX. Here’s a helpful link to directly access ways to watch. You can stream the game for free on Tubi, or catch it on YouTube TV, Hulu + Live TV, NFL+, and fuboTV. And of course, we’ll be watching to see which brands—including tech giants—deliver the most memorable ads of the night.

Between Snap’s game-day integrations, its push to support community-led recovery, and Apple’s move into digital invites, this week is full of shifts in how we connect. Which of these will redefine the way we interact? We’ll be watching.

🤝 Venture Deals

LA Companies

  • Musical AI, a company specializing in rights management for generative AI music, has raised a $1.5M seed funding round led by Build Ventures. The investment will support the development of Musical AI's attribution model, which analyzes tracks to determine the contribution of various data sources in AI-generated music. This enables rightsholders to monitor and manage the use of their works, while providing generative AI companies with access to quality licensed data and detailed usage reports. - learn more

LA Venture Funds
  • Fika Ventures participated in a $16M Series A funding round for Ivo, a San Francisco-based AI-powered contract review platform, bringing its total funding to $22.2M. The company plans to use the funds to scale its AI-driven contract review solutions and has launched the Ivo Search Agent to enhance contract search and analysis capabilities. - learn more
  • Freeflow Ventures participated in a $7M seed funding round for Miist Therapeutics, a Bay Area-based company specializing in physics-based inhaled medicines. Miist plans to use the funds to advance its two lead programs: MST-01 for smoking addiction and MST-02 for migraine treatment. Their proprietary inhaler delivers sterile aqueous drug particles to the peripheral lung, achieving rapid absorption and symptom relief. - learn more
  • Fiore Ventures participated in a $9.5M strategic funding round for Little Otter, a digital mental health care provider specializing in whole-family services. The company plans to use the funds to expand its services to reach millions of families covered by Medicaid and commercial insurance plans, leveraging an AI-powered platform to enhance patient triage and personalized care. - learn more
  • Arca participated in a $13.5M Series A funding round for Beamable, a company specializing in providing live game services for game developers. The funds will be used to expand Beamable's decentralized gaming infrastructure and enhance its platform offerings. - learn more
  • Village Global participated in an $8M seed funding round for Desteia, a company leveraging AI and graph theory to address supply chain disruptions. The funds will be used to enhance Desteia's technology and expand its market reach. - learn more
  • TI Capital and QBIT Capital co-led a $7.5M Series A funding round for Largo.ai, a company specializing in AI-driven solutions for the film industry. The funds will be used to enhance Largo.ai's AI-powered platform and expand its market presence. - learn more
  • Strong Ventures participated in a ₩3.5 billion (approximately $2.9M) funding round for Class101, a South Korea-based all-in-one creator content platform. The company plans to use the funds to enhance its 'Creator Home' service, recruit top creators in fields such as economics, side jobs, art, crafts, and careers, and expand corporate subscription services for employee education and welfare. - learn more
  • Village Global participated in a $4M Seed funding round for Perspective AI, a Palo Alto, California-based company specializing in AI-mediated customer conversations. The funds will be used to expand operations and development efforts. - learn more

      LA Exits

      • SpringboardVR, a provider of virtual reality (VR) venue management software and a leading content marketplace for location-based entertainment, has been acquired by SynthesisVR. Previously owned by Vertigo Games, SpringboardVR is known for its platform that enables VR arcade operators to manage content licensing and operations efficiently. With this acquisition, SynthesisVR aims to enhance its offerings for VR arcades and developers, supporting the growth and innovation of the VR industry. - learn more
      • Generation Genius, an educational streaming platform that provides K-8 science and math videos, activities, and lessons, has been acquired by Newsela to enhance its instructional content and strengthen real-world connections in science and math education. - learn more

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        AI Dominates the Headlines, but Defense Tech Is Gaining Speed

        🔦 Spotlight

        Hello, Los Angeles!

        This week, DeepSeekAI has been dominating the tech conversation. The Chinese AI startup’s chatbot app surged to the No. 1 spot on the App Store, drawing both excitement and scrutiny. Supporters see its open-weight model as a potential game-changer, offering developers more flexibility compared to closed AI systems like OpenAI’s. But the rapid rise has also raised questions about security, data governance, and global AI competition. Whether DeepSeek will be a long-term disruptor or just a momentary sensation remains to be seen, but one thing is clear—AI remains the tech industry’s driving force.

        But while AI continues to dominate headlines, another sector is quietly making waves—defense technology. And one LA-based startup just secured a major endorsement from investors and the U.S. government.

        Castelion’s Hypersonic Bet—Can It Outrun the Defense Industry’s Red Tape?

        Image Source: Castelion

        El Segundo-based Castelionjust raised$100 million to accelerate its mission to build hypersonic weapons faster, cheaper, and at scale. The financing—$70 million in equity (led by Lightspeed Venture Partners with participation from a16z, Lavrock Ventures, Cantos, First In, BlueYard Capital, and Interlagos) and $30 million in venture debt (from Silicon Valley Bank)—is the latest sign that venture capital sees national security startups as a high-growth opportunity.

        Unlike traditional defense contractors, Castelion is operating like a fast-moving startup, not a slow-moving government supplier. Founded by former SpaceX engineers, the company is applying an iterative, test-heavy approach to building long-range hypersonic strike weapons—which travel at speeds exceeding Mach 5 (3,800+ mph) and are designed to evade modern missile defenses.

        Not Just VC-Backed—The U.S. Military is Betting on Castelion Too

        While the $100 million raise is a major milestone, Castelion already has funded contracts with the U.S. Navy, U.S. Air Force, and U.S. Army. These contracts are focused on hypersonic technology development and scaled manufacturing, areas where the military has struggled to move quickly due to bureaucratic delays and reliance on traditional defense giants.

        To prove it can execute, Castelion recently successfully launched a low-cost ballistic missile from a self-built launcher in Mojave. Now, with both government contracts and venture capital behind it, the company is pushing forward on more flight tests and building out its scaled production capabilities.

        Image Source: Castelion - Castelion launches a missile prototype in Mojave, CA

        With rising geopolitical tensions and an increasing focus on faster, cost-effective deterrence, Castelion is positioning itself as a new kind of defense player—one that moves at startup speed. Whether it can sustain that pace while navigating the complexities of government procurement remains to be seen, but one thing is clear: the future of defense tech isn’t just about who can build the best weapons—it’s about who can build them fast enough.


        🤝 Venture Deals

        LA Companies

        • Omnitron Sensors, a Los Angeles-based pioneer in microelectromechanical systems (MEMS) fabrication technology, has secured over $13M in a Series A funding round led by Corriente Advisors, LLC, with participation from L'ATTITUDE Ventures. The company plans to use the funds to expand its engineering and operations teams and accelerate the mass production of its first product, a reliable and affordable MEMS step-scanning mirror designed for various applications, including AI data centers, advanced driver assistance systems (ADAS), drones, extended reality (XR) headsets, and toxic gas-detection systems. - learn more
        • Camouflet, a Los Angeles-based technology company specializing in AI-driven dynamic pricing solutions, has secured a $12M Series A funding round led by QVM. The company plans to utilize the proceeds to scale its platform across various industries, expand into international markets, and enhance its technology and team to better serve its clients. - learn more
        LA Venture Funds
        • Clocktower Ventures participated in a $6.2M Seed funding round for Foyer, a New York-based fintech startup that assists individuals in saving for home purchases. The funds will be used to enhance Foyer's platform and expand its user base. - learn more
        • Smash Capital participated in ElevenLabs' $180M Series C funding round, bringing the company's valuation to $3.3 billion. Based in New York, ElevenLabs specializes in AI-powered text-to-speech and voice cloning technology. The newly secured funds will be used to enhance its AI audio platform and expand its global presence. - learn more
        • March Capital participated in a $25M Series C funding round for SuperOps to support the company's efforts in advancing AI research and development, expanding offerings for mid-market and enterprise managed service providers (MSPs), and scaling its global presence. Additionally, SuperOps is launching an AI-powered Endpoint Management tool to enhance IT team productivity. - learn more
        • Cedars-Sinai participated in a $2M funding round for Neu Health to support its AI-driven neurology care platform for conditions like Parkinson’s disease and dementia. Originating from the University of Oxford, Neu Health will use the funds to enter the U.S. market, beginning with a six-month pilot program at Cedars-Sinai focused on improving neurology patient care. - learn more
        • Chapter One Ventures participated in a $2.8M seed funding round for Mevvy, a blockchain startup aiming to democratize Maximal Extractable Value (MEV) trading by simplifying access and reducing technical complexities. The funds will be used to further develop Mevvy's platform, expand its user base, and enhance its offerings. - learn more

          LA Exits

          • Kona, an AI-powered assistant and coach for remote managers, has been acquired by 15Five, a performance management platform. Founded in 2019, Kona integrates with virtual meeting platforms like Zoom and Google Meet to provide tailored coaching and enablement for remote managers. The acquisition aims to enhance 15Five's offerings by incorporating Kona's capabilities to improve manager effectiveness within existing workflows. - learn more

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            Can Technology Outpace Wildfires?

            🔦 Spotlight

            Hello, LA!

            This week, tech headlines are buzzing with OpenAI's launch of Operator, a tool that promises to transform task automation, and TikTok’s major outage, which left millions disconnected. But closer to home, as wildfires blaze across Southern California, survival has become the focus—and technology is making it possible.

            When the plume of smoke reappeared on the horizon, residents across Southern California turned to tools like Watch Duty. Over the past week, as flames surged, the app gained 600,000 new users in just one night, delivering critical, real-time information to help residents stay ahead of danger. Watch Duty, designed to provide wildfire updates, has proven to be much more than an alert system. It’s a lifeline.

            The app integrates live data, satellite imagery, and community reports to send updates directly to users. Information includes fire locations, evacuation orders, and air quality indices, empowering quick, informed decisions. Its community-driven ethos—with contributions from locals, firefighters, and volunteers—ensures hyper-local and timely updates, filling gaps where traditional news outlets often fall short.

            Image Source: Watch Duty

            A New Era of Fire Alerts

            Watch Duty redefines wildfire preparedness through technology and collaboration:

            • Fire Detection: Monitors data from satellites, agencies, and ground sources to identify wildfires.
            • Data Verification: A team of experts ensures reported activity is accurate.
            • Real-Time Alerts: Notifications are sent within 60 seconds of detection.
            • Community Contributions: Local residents provide photos and updates.
            • User Notifications: Alerts include fire size, location, and evacuation details.

            These features make Watch Duty an indispensable tool during wildfire season. In 2024, the app processed over 2 million alerts and supported 50,000 evacuations, with plans to expand predictive modeling by 2025 to anticipate threats before they escalate.

            Innovations Reshaping Wildfire Management

            Early Detection Leaders:

            • AlertCalifornia: Operates over 1,000 cameras with machine learning to monitor high-risk areas.
            • Pano AI: Uses cameras and sensors to detect smoke and alert responders.
            • Torch Sensors: Deploys heat-detection sensors to identify anomalies early.

            Image Source: Torch Sensors

            Predictive and Analytical Pioneers:

            • Chooch AI: Employs drones and computer vision to monitor fire hazards.
            • Data Blanket: Uses analytics to forecast fire behavior and assist evacuations.
            • Rain: Leverages advanced atmospheric sensing and AI-driven technology to provide precise fire detection and tracking. Its real-time data on fire weather conditions and environmental factors helps agencies anticipate and respond to wildfires with greater efficiency.
            • SCEPTER: Tracks air quality and wildfire emissions using AI and satellite data.

            Image Source: Rain

            A Vision for the Future

            As Los Angeles continues to adapt to the realities of a changing climate, tools like Watch Duty, Pano AI, and AlertCalifornia are proving to be invaluable. These technologies are not just reactive measures; they represent a shift toward proactive disaster preparedness. The question now isn’t whether technology can help but how much more it can achieve in the years to come.

            With the integration of predictive modeling, AI, and real-time data, there’s hope for a future where wildfires are no longer unpredictable forces of destruction. Imagine every household equipped with predictive wildfire maps, heat-detecting drones, and AI-driven tools to guide safety decisions. The innovations are here—it's up to us to support and scale them to ensure they reach the communities that need them most. Which company, which app, or which breakthrough will emerge as the next lifeline? The possibilities for a safer, more prepared Los Angeles feel closer than ever.

            🤝 Venture Deals

            LA Companies

            • Favorited, a new livestream app positioning itself as an alternative to TikTok, has raised a $1.3M Pre-Seed from HF0, Soma Ventures, and several angel investors from the entertainment and social space. The platform, which participated in the a16z Speedrun accelerator program, offers features like streaks and leaderboards to boost user engagement. Favorited plans to use the funds to enhance its app's functionalities and expand its user base. - learn more
            LA Venture Funds
            • Overture VC participated in a $12M Series A funding round for Bedrock Energy, an Austin, Texas-based startup specializing in geothermal heating and cooling systems. Bedrock Energy plans to use the funds to advance its geothermal technologies and expand deployments in Colorado, Utah, and neighboring states. - learn more
            • Navigate Ventures LLC participated in a $7.2M Series A funding round for XILO, a San Diego-based insurance technology startup that provides a quoting and sales automation platform to help independent insurance agencies convert the next generation of insurance shoppers; the funds will be used to scale operations, manufacturing, and commercial efforts for its acne products. - learn more
            • Upfront Ventures participated in a $5.25M Seed funding round for 1up.ai, a New York-based company that automates knowledge for sales teams; the funds will be used to empower their growing customer base, including industry leaders like WalkMe, Gladly, and Deliveroo. - learn more
            • MTech Capital participated in a $2.2M Pre-Seed funding round for Qumis, a Chicago-based AI platform designed to transform insurance knowledge work; the funds will be used to scale its AI capabilities, accelerate product development, and expand its customer base. - learn more
            • Amboy Street Ventures participated in a SEK 304M Series B funding round for Gesynta Pharma, a Stockholm-based pharmaceutical company specializing in anti-inflammatory and pain-relief treatments, with the funds directed toward advancing a Phase II clinical trial of their lead candidate, vipoglanstat, for endometriosis. - learn more

            LA Exits

            • Bandy Manufacturing, a Los Angeles-based provider of aerospace fasteners and components, has been acquired by Novaria Group to enhance its portfolio and expand its capabilities in the aerospace and defense industries. - learn more
            • Pangea, a company specializing in eco-friendly and sustainable products with a focus on innovative technology solutions, is being acquired by Nature's Miracle Holding Inc. to accelerate growth and capitalize on synergies in sustainability and tech-driven product development. - learn more
            • Notisphere, a healthcare communication platform streamlining recall and alert management, has been acquired by Par Excellence Systems to enhance its capabilities in delivering efficient supply chain solutions for the healthcare industry. - learn more
            • Cryogenic Machinery Corp., a North Hollywood, California-based manufacturer specializing in cryogenic pumps for industrial gas and energy applications, has been acquired by PSG, a Dover company, to enhance PSG's portfolio of specialized fluid handling solutions. - learn more

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