Shares of Fisker (NYSE:FSR) stock are in the green after the electric vehicle (EV) company announced its plans to open a delivery center in China this year. Furthermore, deliveries of the Ocean SUV will begin in China in the first quarter of 2024.
Fisker’s management has already spoken with officials and business leaders in China concerning their plan and other opportunities. The discussion included topics such as “automotive supply chains, logistics, warehousing, and future production development.”
“After beginning deliveries in Europe and with first vehicles coming to our US customers on June 23, we are excited to move into the Chinese market later this year,” said CEO Henrik Fisker. “We expect China to be an important growth market for EVs in the future and believe our vehicles will be very appealing.”
FSR Stock: Fisker Discloses China Expansion Plans
Fisher also noted that an expansion into China could increase Ocean sales by 75,000 units per year. China, which operates the largest automotive market in the world, dished out approximately 26 million vehicles last year. EVs accounted for about 6 million to 7 million of these vehicles, or about 25% of the Chinese vehicles sold. In 2023, Chinese EV market share has increased to about 27%.
Meanwhile, volume deliveries of the Ocean will begin on June 19 in the U.S. The first delivery of the vehicle took place in Denmark on May 5. The EV, which will be available in the Extreme, Ultra, and Sport versions, has an EPA estimated range of 360 miles for the Extreme version. That would cement it as the electric SUV with the highest range under $200,000 in the U.S.
The Ocean also recently won the 2023 Red Dot Product Design Award for Best Electric Vehicle. The starting prices for the three vehicles are outlined below:
- Fisker Ocean Sport: $37,499
- Fisker Ocean Ultra: $49,999
- Fisker Ocean Extreme: $68,999
In addition, Fisker has disclosed plans to sell emission credits in the U.S., adding that a “major automaker” has already agreed to purchase credits at competitive rates.
“We are excited that as an all-electric startup, we can offer other carmakers competitive choices to obtain emission credits and remain in compliance with regulations in the US,” said Fisker. “We have been looking forward to participating in the emission-credits market since we founded Fisker Inc. in 2016.”
On the date of publication, Eddie Pan 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.