Fisker To Sell Emission Credits To 'Major' Automaker Ahead Of 1st US Delivery

California headquartered EV company Fisker Inc FSR on Tuesday said that it has agreed to sell emission credits to a “major” automaker.

What Happened: Fisker CEO Henry Fisker said that the company has been looking forward to participating in the emission credits market since 2016 when it was founded. However, he did not name the automaker Fisker would be selling the credits to.

The EV maker will start U.S. delivery of the all-electric Fisker Ocean SUV later in June. Both the Fisker Ocean One launch edition and the Fisker Ocean Extreme will generate the maximum allowable emission credits per vehicle.

Automakers not in compliance with emission standards can purchase these credits to help avoid non-compliance penalties which can run up to $5,000 per violation.

"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," CEO Fisker said.

Why It Matters: Fisker delivered the first Ocean SUV to a customer in Denmark in May.

The EV startup reported first-quarter FY23 sales of $198 thousand, missing the consensus of $14.35 million.

Despite cutting its 2023 production target from 42,400 units to 32,000 – 36,000 units, the company still forecasts an 8-12% annual gross margin and potentially positive EBITDA for 2023.

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