EV startup in Los Angeles Fisker (FSR) and Taiwan-based electronics manufacturer Foxconn will collaborate on an electric vehicle project, the two companies announced Wednesday. The Fisker share rose.
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Fisker and Apple (AAPL) partner Foxconn signed a memorandum of understanding to “develop a groundbreaking electric vehicle,” according to a press release.
The partnership, 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 to be named will be available in multiple global markets, including North America, Europe, China and India. The companies project annual volumes in excess of 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 it takes to bring a new vehicle to market. shortened.
Foxconn and Fisker expect to finalize talks and enter into a formal partnership agreement during the second quarter. Production of the project is scheduled for Q4 2023.
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Fisker share
Shares were up 17.5% to 19.15 on high volumes in today’s stock market, ahead of the company’s quarterly results at the end of Thursday. Fisker shares, trading well above the 50-day line, make up a cup base with a buy point of 23.73, according to MarketSmith chart analysis. The relative strength line tends upwards.
Among others EV makers, Tesla (TSLA) climbed 4% today after falling 24% from a peak of 900.40 intraday on Jan. 25. Nio (NIO) rose 2.8%, Li Auto (LI) is up 2.6% and Xpeng (XPEV) is down 1.5%.
This will be Fisker’s second vehicle, following the launch of the Ocean SUV. Fisker plans to start production in the fourth quarter of 2022. It says it has more than 12,000 paid reservations for the Ocean SUV worldwide to date. It plans to unveil a prototype of the ocean later this year.
Fisker worked with Magna International (MGA) for the ocean. It will use a modified version of an EV platform developed by Magna. The Ocean SUV has a starting price of $ 40,000.
Fisker shares went public on October 30, following a blank merger with Spartan Energy. The deal valued Fisker at $ 2.9 billion.
Henrik Fisker launched the company of the same name in 2016, after a previous company went bankrupt. The now defunct company produced a luxury plug-in hybrid electric Fisker car. However, the company discontinued the Karma EV due to poor sales.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia
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