Fisker’s founder and CEO, Henrik Fisker, discusses his company’s IPO and the future of electric cars.
Electric vehicle maker Fisker Inc. and Foxconn Technology Group announced on Wednesday that they would collaborate on an electric vehicle project, driving Fisker’s shares to rise more than 38%.
In a joint launch detailing their memorandum of understanding, the companies launched the PEAR Project (Personal Electric Automotive Revolution): the creation of an “innovative electric vehicle” under the Fisker brand that will be manufactured by Foxconn with projected annual volumes of more than 250,000 from in the fourth quarter of 2023.
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“The creation of the PEAR Project with Foxconn brings together two similar and complementary thinking companies, each focused on creating new value in a traditional industry,” said Fisker President and CEO Henrik Fisker. “We will create a vehicle that crosses social boundaries, offering a combination of advanced technology, desirable design, innovation and value for money, while fulfilling our commitment to create the most sustainable vehicles in the world.”
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| FSR | FISKER INC | 22.58 | +6.29 | + 38.61% |
“The Fisker and Foxconn partnership brings together two global innovation leaders who will join forces to unlock the potential of the electric vehicle industry,” added Foxconn Technology Group President Young-way Liu.
The car will be sold in North America, Europe, China and India. Although his design remains a secret, Fisker in a tweet on Wednesday morning proved that he was perhaps “too futuristic”.
The companies also said they will enter into a formal agreement in the second quarter of 2021.
The vehicle will be the second Fisker vehicle based in California following the launch of the Ocean SUV – in partnership with Magna International – in 2022. The startup that became a special purpose acquisition company (SPAC) plans to unveil a prototype with the intention of producing the Ocean later this year.
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Foxconn, better known as the iPhone maker for Apple, has partnered with automakers before, although its deal with Fisker is the first with a US-based electric vehicle company.
Previously, the world’s largest electronics manufacturer worked on other electric vehicle ventures, including agreements with Chinese electric car maker Byton Ltd. and automakers Zhejiang Geely Holding Group and then Fiat Chrysler Automobiles NV
Although it is still unclear where the initial production will begin, Fisker told The Wall Street Journal that there is a good chance that it is in the United States; Foxconn has a factory in Wisconsin.
Simon Sproule, senior vice president of communications at Fisker, told FOX Business that this venture represented a major step forward for both companies and that the vehicle was “likely” to be made in America.
“The auto industry is a global industry and serves global markets. But, all countries are naturally interested in local technologies and jobs,” he said, noting that the company expected it to be a good opportunity maker in the U.S.
“I think what you’ve seen in the past two or three years is the auto industry now reaching a critical point in terms of the transition to electric vehicles,” said Sproule.
Sproule predicted that as the era of the internal combustion engine ends, the mass adoption of electric cars will follow – represented by the large number of new electric vehicle companies and the shift in focus from established automakers to electric cars.
“This is not just happening in the United States, it is happening all over the world and it is part of a seismic shift in the industry, in fact,” said Sproule.
He believes that the market will “flourish” in the coming years.
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“And I think a vehicle like the one we’re talking to Foxconn is going to serve us very well. So, we are very excited about the opportunity he gives us ”, concluded Sproule.
Fisker, founded in 2016, went public in October.