Fisker and Foxconn electric vehicle deal pushes shares higher

Electric vehicle maker Fisker Inc. and Foxconn Technology Group said on Wednesday they will collaborate on an electric vehicle project, leading Fisker’s shares to rise by more than 38%.

In a joint statement detailing their MoU, the companies launched the Personal Electric Automotive Revolution (PEAR) project: the creation of a Fisker-branded “revolutionary electric vehicle” to be manufactured by Foxconn at expected annual volumes of over 250,000 as of the fourth quarter 2023.

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“The creation of the PEAR project with Foxconn brings together two complementary and like-minded companies, each focused on creating new value in a traditional sector,” said Henrik Fisker, Chairman and CEO of Fisker. “We will create a vehicle that crosses social boundaries while offering a combination of cutting edge technology, desirable design, innovation and value for money, while delivering on our commitment to creating the most sustainable vehicles in the world. “

“The Fisker and Foxconn partnership brings together two global innovation leaders who will join forces to unleash the potential of the electric vehicle industry,” added Young-way Liu, Chairman of Foxconn Technology Group.

The car will be sold in North America, Europe, China and India. Although its design remains a secret, Fisker in a tweet Wednesday morning said it may even be “too futuristic.”

The companies also said they would strike a formal deal in the second quarter of 2021.

The vehicle will be Fisker’s second vehicle, based in California, following the launch of the Ocean SUV – in partnership with Magna International – in 2022. The start-up has become a specialized acquisition company (SPAC) plans to unveil a production prototype of the Ocean later this year.

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Foxconn, which is best known as the maker of Apple’s iPhone, has partnered with automakers in the past, though its deal with Fisker is the first with a US-based electric vehicle company.

Previously, the world’s largest electronics maker worked on other electric vehicle projects, including deals with Chinese electric car maker Byton Ltd. and automakers Zhejiang Geely Holding Group and the former Fiat Chrysler Automobiles NV.

While it’s still unclear where initial production will begin, Fisker told the Wall Street Journal there’s a good chance it’s in the United States; Foxconn has a factory in Wisconsin.

Simon Sproule, senior vice president of communications at Fisker, told FOX Business that the company was a big step forward for both companies and that the vehicle was “likely” to be made in America.

“The auto industry is a global industry and it serves global markets. But, every country is naturally interested in local technologies, local jobs,” he said, noting that the company hoped it would. a good opportunity maker in the United States.

“I think what you’ve seen over the past two or three years is that the auto industry is now reaching a global tipping point in terms of transitioning to electric vehicles,” Sproule said.

Sproule predicted that as the era of the internal combustion engine ends, mass adoption of electric cars will follow – due to the large number of new electric vehicle companies and the shift of established carmakers to electric cars. .

“It’s not just happening in the United States, it’s happening all over the world and it’s really part of a pretty seismic shift in the industry,” Sproule said.

He believes the market will “flourish” in the years to come.

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“And, I think a vehicle like the one we are talking about with Foxconn, I think it will serve us very well. So we are very excited about the opportunity it gives us,” concluded Sproule.

Fisker, which was founded in 2016, went public in October.