What happened
The stock of EV start-up Fisker (FSRN -12.70%) jumped more than 5% Thursday morning, extending a nearly 10% gain on Wednesday. The stock is now up almost 25% over the last two weeks. As of 11:05 a.m. ET, Fisker shares remain higher by 4.6% on the day.
So what
The stock's rise has come after the company announced last week that its electric Ocean SUV received European regulatory approval for sale. It said sales in Europe will begin tomorrow, May 5. This week, Fisker informed investors of a new partnership that offers a further glimpse into the company's strategy.
Its partnership with energy company Ample will give customers the option to purchase the Ocean with swappable batteries made with Ample's technology. Ample and Fisker will share in the revenue generated from the battery-swapping system. The new battery option will be available by the first quarter of 2024.
Image source: Fisker.
Now what
Fisker thinks the swappable battery technology will be especially beneficial for fleet customers. The company hopes that will open up another customer base as it works to increase volume. The technology could help fleet owners decide to transition to electric vehicles by offering a quick, cheap way to give vehicles full charging power.
Chinese EV maker Nio (NIO 8.72%) is also pursuing battery swapping as a means of charging electric vehicles. Nio already has more than 1,300 battery swap stations as of March 31, 2023, and it plans to install 1,000 this year.
Nio is aiming to build out a network and offer a lower up-front vehicle cost to customers who buy a power-swapping subscription. Fisker is taking a different approach and hoping the technology will speed the adoption of its new vehicles as it ramps up sales of the Ocean and future models in both Europe and the United States. Investors seem excited to see Fisker starting deliveries and offering this technology. The company should provide more information when it announces its first-quarter earnings update on May 9.
