What happened
Fisker (FSRN -2.20%) announced some important news today, and its stock is soaring as a result. Shares jumped more than 14% early Wednesday morning and remained higher by 12.8% as of 10:15 a.m. ET.
So what
Fisker stock is bouncing off a recent all-time low after the company said European regulators have certified its Ocean SUV for sale. Fisker will begin deliveries of its limited edition Ocean One on May 5 in Europe. The vehicle is being manufactured by Fisker partner and automotive supplier Magna International at its Austrian facility.
Image source: Fisker.
Now what
Fisker has said it will only make 5,000 units of the the Ocean One model and it now expects all of those to be delivered to reservation holders by the end of September. The One is listed for $68,999, but the company has also produced several units of its Ocean Ultra and Sport models, which list for $49,999 and $37,499, respectively. Fisker expects to begin deliveries of the lower-priced trim models in September.
Sales in the U.S. will follow initial deliveries in Europe, the company said. Fisker is taking the approach of achieving certification from regulators simultaneously in Europe and the United States as they have slightly different standards.
The company expects that approach to allow it to base initial sales around regional demand. Fisker chairman and CEO Henrik Fisker stated, "Our unique business model enables this level of flexibility, which we are now capitalizing on." Its contract manufacturing agreement also allows it to minimize high capital costs that other EV start-ups need to overcome.
Fisker has previously said it expects to produce more than 42,000 Ocean SUVs in 2023. The company next updates investors with its first-quarter earnings call on May 9.
