Fisker Stock Rises Following U.S. Emission Credits Plan Update

Fisker Stock

Fisker Stock (NYSE:FSR)

After offering an update on the electric car manufacturer’s aim to include the sale of emission credits into its overall business strategy in the United States, Fisker stock surged higher on Wednesday after the announcement.

The business, which is located in California, has already agreed to sell credits to a large automobile manufacturer at prices that are comparable with the market.

Henrik Fisker, Chairman, and Chief Executive Officer of the all-electric vehicle manufacturer, shared his enthusiasm about providing other automakers with viable options to earn pollution credits and stay in compliance with rules in the United States.

By the end of this month, Fisker (NYSE:FSR) will begin delivering the all-electric Fisker Ocean to customers in the United States. The Environmental Protection Agency (EPA) Certificate of Conformity and the California Air Resources Board Executive Order have been awarded to the Fisker Ocean Extreme. This paved the way for the automobile to be offered for sale and delivered in all 50 states of the United States and the District of Columbia.

The California Air Resources Board has confirmed that the Fisker Ocean One launch edition and the Fisker Ocean Extreme will generate the maximum allowable credits per vehicle, 4.0 ZEV credits. This applies to vehicles that are sold in the state of California as well as in over a dozen other states in the United States that have adopted California’s environmental standards. Automobile manufacturers can purchase the credits, which may assist them in avoiding a noncompliance penalty of up to $5,000 per infraction. According to the goal measurement for 2023, the sale of one Fisker Ocean will create roughly 395 NHTSA credits. Automakers now again have the opportunity to acquire credits to mitigate the penalty for noncompliance with NHTSA standards; the penalty for noncompliance with these requirements is $15 per credit. There is also the Environmental Protection Agency, which has regulations concerning new cars’ emissions. Following the GHG criteria for 2023, each Ocean will produce roughly 159 credits for each car sold.

Fisker stock jumped $7.50, or 7.55 percent, to $6.30 on the day.

Featured Image: Megapixl © Brodogg1313

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