What happened
Last week, Fisker (FSRN 1.80%) said it had been given regulatory approval to begin delivering its electric Ocean SUV in the U.S. later this month. More news about its U.S. business had the stock jumping today. Fisker shares popped by as much as 14% this morning and are holding on to a gain of 5.8% as of 11:35 a.m. ET.
So what
Fisker will begin deliveries in the U.S. market during the week of June 19 after its announcement that it had received the Environmental Protection Agency (EPA) Certificate of Conformity and approval from the California Air Resources Board (CARB) last week.
Yesterday, the company also said it plans to sell emission credits in the United States as part of its U.S. business strategy. Fisker said it already has an agreement in place with an unnamed "major automaker" to sell carbon credits.
Now what
The EV start-up is now using its position of exceeding emission and fuel economy standards to sell available credits to an automaker that doesn't meet those standards. Fisker CEO Henrik Fisker said plans have been in place since the company's founding in 2016 to boost revenue by selling credits. He stated, "We are excited that as an all-electric start-up, we can offer other carmakers competitive choices to obtain emission credits and remain in compliance with regulations in the U.S."
In May, the EPA confirmed that Fisker's Ocean SUV has a range of 360 miles. That has led to CARB acknowledging that the SUV can generate the maximum allowable credits per vehicle sold in California.
Investors are getting excited over the start of Ocean deliveries in Europe and the upcoming initial sales in the U.S. Now there is another source of revenue helping to boost Fisker stock today.
