Electric vehicle (EV) manufacturer Fisker (NYSE:FSR) is grabbing the headlines right now. Yesterday, the company disclosed a collaboration with ChargePoint (NYSE:CHPT). This could be a win-win for both companies in the long run. However, FSR stock is still falling sharply in early trading today.
ChargePoint has an extensive network of EV charging stations. In fact, ChargePoint’s North American network comprises more than 210,000 active ports.
As an EV maker, Fisker undoubtedly wants to make it as convenient as possible for customers to charge their vehicles. Therefore, it makes sense that Fisker would choose to team up with a premier charging station network provider like ChargePoint.
Accordingly, Fisker has officially named ChargePoint as its North American partner for public charging solutions. The press release for this announcement came out yesterday and one might expect Fisker’s investors to celebrate today. Yet, as always, the financial markets are full of surprises and stocks don’t necessarily move the way people may expect.
What’s Happening With FSR Stock?
Interestingly, FSR stock is dropping 6% this morning, slipping below the $6 level. Shares are currently down 16% year-to-date (YTD) in 2023 as well as down 50% for the past one year.
CHPT stock is also down in early trading today. Are financial traders bearish on the Fisker’s partnership with the EV charging company?
It’s a valid question, as the collaboration looks like a win-win for both companies. Impressively, Fisker EV owners will have “access to more than 210,000 active ports under management, with over 16,700 DC fast charge ports and over 400,000 roaming ports.” Plus, the partnership means more EV drivers will use ChargePoint’s charging stations.
Perhaps, today’s investors just aren’t in a mood to buy growth stocks. A key inflation measure, the Personal Consumption Expenditures (PCE) price index did come in hotter than expected this morning.
If traders are anxious about inflation and interest rate hikes, then they may be temporarily bearish on FSR stock. Eventually, however, they might get charged up about this arrangement between two notable companies in the electric vehicle space.
On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
