Los Angeles-based EV startup Fisker and Taiwan-based electronics manufacturer Foxconn are set to collaborate on an electric vehicle project, the two companies announced Wednesday. Fisker stock soared.
Fisker and Apple partner Foxconn signed a memorandum of understanding to "develop a breakthrough 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 yet-to-be-named EV will be available in multiple global markets including North America, Europe, China and India. The companies project annual volumes of more than 250,000.
The two firms say it will take just 24 months to produce the next Fisker vehicle — from research and development to production, reducing half of the traditional time required to bring a new vehicle to market.
Foxconn and Fisker expect to conclude discussions and enter into a formal partnership agreement during Q2. The project is slated to start production in Q4 2023.
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Fisker Stock
Shares shot up 39% to 22.58 on high volume on the stock market today ahead of the company's quarterly earnings report late Thursday. Fisker stock, which is trading well above its 50-day line, is forming a cup base with a buy point of 23.73, according to MarketSmith chart analysis. The relative strength line is trending upward.
Among other EV makers, Tesla climbed 6.2% today after falling 24% from a high of 900.40 intraday on Jan. 25. Nio rose 5.6%, Li Auto 6.3% and Xpeng added 2.1%.
This will be Fisker's the second vehicle, following the launch of the Ocean SUV. Fisker it plans to start production on in Q4 2022. It says it has more than 12,000 global paid reservations for the Ocean SUV to date. It plans to unveil a production-intent prototype of the Ocean later this year.
Fisker partnered with Magna International for the Ocean. It will use a modified version of a Magna-developed EV platform. The Ocean SUV will have a starting price of $40,000.
Fisker stock went public on Oct. 30, following a blank-check merger with Spartan Energy. The deal valued Fisker at $2.9 billion.
Henrik Fisker launched the eponymous company in 2016. That came after an earlier venture went bankrupt. The now-defunct business produced a luxury plug-in hybrid electric Fisker car. However, the company discontinued the Karma EV due to poor sales.
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