Ready to hop in the car and drive off to new gains this week? Up-and-coming electric vehicle maker Fisker (NYSE:FSR) wants the same thing. On Monday, the company announced two new partnerships that have FSR stock climbing higher. So what do investors need to know now?
Well, the big news comes from a company press release this morning. In the announcement, Fisker shared that it has two new partnerships that will provide after-sales services. Who are those partners? Cox Automotive and Rivus Fleet Solutions.
Essentially, Fisker is working to differentiate itself from other EV makers through its asset-light model. This means that the company is working to minimize its risks and outsource many of the other critical automaker services. Importantly, this model has so far attracted interest from analysts and investors, especially as other startups work to build their factory footprints.
Where do Cox Automotive and Rivus Fleet Solutions come in? The two companies will provide services such as vehicle delivery, maintenance, fleet management, valuation, trade-ins and refurbishment. Investors could see this partnership as a big step in the right direction as Fisker ramps up, making it a good sign for FSR stock. Investors should note that right now, these after-sales partnerships are focusing on the United Kingdom.
Additionally, these partnerships come after an even more critical announcement. Fisker recently shared that Magna International will handle all of the manufacturing and co-development of its Ocean SUV. Magna already has a presence, particularly in Europe, and will help bring the Ocean SUV to life.
So with these deals done, what else do you need to know about FSR stock?
Why the News Matters for FSR Stock
Although Fisker has a unique business model and an experienced leader, it does face a ton of competition from new and old automakers. Importantly, that means every choice it makes right now is under great investor scrutiny. As it promises an asset-light business model, investors are going to want to see how these partnerships will play out and what they will mean for FSR stock. Additionally, they want further evidence that Fisker vehicles will make it to market.
As part of the deal with Magna International, Fisker plans to launch the Ocean SUV in the fourth quarter of 2022. Along with that, it also plans to start consumer experience centers in 2021. Now, thanks to deals with Cox and Rivus, we get to know a little bit more about the timeline.
Importantly, Fisker shared today that it plans for the Ocean to launch in the U.K. by 2023. Along with that, it will open a consumer experience center in London in 2022.
So what should investors do? Like many of its peers, Fisker now has to deliver the Ocean and continue to captivate investors and customers. Wait for more updates on its vehicle reservations, partnerships and maybe even its future lineup. For now, FSR stock is up just under 2% after the opening bell.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.