What happened
Shares of electric-vehicle (EV) maker Fisker (FSRN -14.37%) jumped today after the company announced a manufacturing agreement with Magna International (MGA 1.02%). The stock was up 10% as of 3 p.m. EST, and shares of fellow EV maker Hyliion Holdings (HYLN -2.27%) and EV charging-station operator Blink Charging (BLNK -2.97%) were also up today, by 11% and 12% respectively.
So what
Fisker and Magna had announced a framework for cooperation in October. Today, the companies said they have finalized a platform-sharing and initial manufacturing agreement for Fisker's fully electric Ocean SUV.
Fisker's electric Ocean SUV. Image source: Fisker.
Fisker expects to begin production of its Ocean SUV in the fourth quarter of 2022. Hyliion, which plans commercial production of Class 8 semi-trucks, has development, assembly, engineering, and design partnerships of its own.
As the reality of advancements in EV supply grows, interest in the manufacturers and other equipment suppliers has been growing. Blink Charging's equipment will be used by various battery-electric vehicles, and investors continue to pile into the stocks.
Now what
In the past two days, Blink Charging announced agreements for its charging units at healthcare facilities in Illinois and Pennsylvania. Investors seem to gain interest at each step as the EV ecosystem builds out.
Fisker will be using Magna's EV platform for its SUV, giving it a realistic starting point beyond the design phase. Fisker's Ocean will have a starting price below $40,000, and an expected 350-mile range with its top battery option.
Hyliion has a more diverse approach, and plans to offer multiple fuel options for its semi-trucks, including a hybrid compressed natural gas (CNG) solution, a hybrid diesel solution, and hydrogen fuel cell options when a hydrogen fueling network develops.
But it's the battery-electric vehicle solutions from Fisker, Hyliion, and others that have been driving Blink Charging's stock. Even after a critical short-seller report last month, the share price has recovered for a year-to-date return of over 1,300%.
While returns from Fisker and Hyliion aren't quite that excessive, interest in those (and other) EV names has been growing this year. Investors should be sure to apply the appropriate amount of capital to these investments. Fisker is still a long way from producing its first vehicle, and currently has just 10,400 paid reservations for the Ocean. Even with its finalized manufacturing agreement, it has a way to go to grow into its current $4.6 billion market cap valuation.
