California electric vehicle startup Fisker said last Friday that it was considering options to manufacture vehicles in the United States starting in 2024. The news means that certain models could provide US car buyers with access to a $7,500 tax credit under the Inflation Reduction Act, designed to promote lower healthcare costs and clean energy alongside efforts to increase corporate taxes.
Demand for EVs has recently surged as threats of climate change are driving countries to seek cleaner fuel options to achieve net-zero carbon emissions. Proof of this high demand can be seen in the number of reservations for Fisker’s Ocean SUV, its first vehicle model—enough for the EV startup to adjust full-year production projections. The company has stated that both the Sport and Ultra variants of the Ocean slated for next year have already sold out.
Production of the Ocean SUV is planned to begin this fall at Magna International’s Austrian unit. When asked for comment on Fisker’s plans to up production, Magna said they could accommodate it. “Yes, we are flexible and capable of supporting our customer’s needs and/or schedule requirements,” Magna said on Friday.
Fisker said it has reached out to US customers who have pre-ordered to ensure they can retain eligibility for the federal tax credit if it becomes law. The credit is only available for vehicles manufactured in the United States, making many current electric vehicles ineligible.
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