Why Fisker stock rose nearly 5% on Thursday

New electric vehicle (EV) manufacturer fisker (FSR 4.73%) On Thursday, the stock exchange went live. Thanks to its partnership with one of the country’s leading banks, the company is able to offer affordable financing options to its customers. The potential popularity of this initiative excited investors, and in response they sent Fisker stock up nearly 5% that day.

1.99% Financing Promise – For a Limited Time

Through its Fisker Finance division, the company is launching an affordable auto loan program for qualified customers. This allows such people to own one of the company’s luxury Ocean SUVs with an annual percentage rate (APR) as low as 1.99% for a 60-month loan.

The program is being offered through partnerships with large banks. JP Morgan Chase.

Rates are essentially teasers to quickly drive sales and generate interest and publicity. Fisker describes this as a ‘special rate’ and adds that it will be available until January 10, 2024.

As is common in the automotive industry these days, potential Ocean owners can apply for such financing through the Fisker Finance portal. According to EV experts, the system can make financing decisions within minutes. Of course, there is absolutely no guarantee that the applicant will receive a favorable interest rate or loan.

Fisker said its finance division offers loans of up to 24.99% APR.

This can be a deciding factor for fence sitters.

These days with (relatively) rising interest rates across our economy, a number like 1.99% certainly sounds attractive. For those who are thinking about saving up for an expensive ocean vacation, it may move the needle. At least it will generate favorable publicity for Fisker. Investors were right to cheer the scrappy company’s latest moves.