Los Angeles based EV startup Fisker (FSR) and Taiwanese electronics maker Foxconn are set to collaborate on an electric vehicle project, the two companies announced on Wednesday. Fisker’s stock soared.
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Fisker and Apple Foxconn, an AAPL partner, signed a memorandum of understanding to “develop an innovative electric vehicle”, according to a press release.
The collaboration, code-named “Project Pear” (Personal Electric Automotive Revolution), will produce a vehicle developed and sold under the Fisker brand, including through the Fisker Flexee Lease program.
The EV yet to be named will be available in several global markets, including North America, Europe, China and India. The companies project annual volumes of more than 250,000.
The two companies say it will take just 24 months to produce the next Fisker vehicle – from research and development to production, reducing half the traditional time required to bring a new vehicle to market.
Foxconn and Fisker hope to conclude the discussions and sign a formal partnership agreement during the second quarter. The project is scheduled to start production in the fourth quarter of 2023.
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Fisker Stock
The shares rose 17.5% to 19.15 in high volume in the stock market today, before the company’s quarterly earnings report on Thursday. Fisker’s shares, which are trading well above its 50-day line, are forming a cup base with a buying point of 23.73, according to analysis by the MarketSmith chart. The line of relative strength is trending upwards.
Among other EV manufacturers, Tesla (TSLA) rose 4% today, after falling 24% from an intraday high of 900.40 on January 25. Nio (NIO) increased by 2.8%, Li Auto (LI) is 2.6% and Xpeng (XPEV) fell 1.5%.
This will be Fisker’s second vehicle after the launch of the Ocean SUV. Fisker plans to start production in the fourth quarter of 2022. It says it has over 12,000 global reserves paid for the Ocean SUV so far. She plans to launch a prototype with production intent for Ocean later this year.
Fisker has partnered with Magna International (MGA) to the Ocean. It will use a modified version of an EV platform developed by Magna. The Ocean SUV will have a starting price of $ 40,000.
Fisker’s shares went public on October 30, following a merger with a blank check with Spartan Energy. The deal valued Fisker at $ 2.9 billion.
Henrik Fisker launched the eponymous company in 2016. This happened after a previous venture went bankrupt. The now defunct business has produced a luxury plug-in hybrid electric Fisker car. However, the company discontinued Karma EV due to weak sales.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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