Fisker Inc. (NYSE: FSR) stock is trading up more than 18% in early trades today after surfacing of an EV collaboration news. As of 10:35 a.m. EST, stock price was buoying at $19.30 rising +18.48%.
Why is this happening?
The California-based company has revolutionized the automobile industry by creating some of the most desirable and eco-friendly electric vehicles in the world. Passionately striving for a clean future for all, the company is establishing itself as an industry leader in e-mobility.
The company today announced that it has entered into an agreement with Hon Hai Technology Group (Foxconn) to cooperate on developing a new breakthrough electric vehicle. Some aspects of the project that has been codenamed as PEAR (Personal Electric Automotive Revolution) are as follows:
- Foxconn and Fisker will cooperate on the development of a breakthrough new class of vehicle.
- The vehicle will be manufactured at a volume of more than 250,000 units per year by Foxconn.
- Besides North America, Europe, and China, the global market of this project includes India.
- The start of production is projected for the fourth quarter of 2023.
- Fisker will be launching this second vehicle after launching its Ocean SUV in Q4 2022.
- Foxconn and Fisker’s new collaboration with the automotive industry will introduce ICT capabilities into a revolutionary automotive business model.
- By taking advantage of these opportunities, automakers will be able to transition to new, effective, and efficient manufacturing processes and business models.
- Upon signing the Memorandum of Understanding, Fisker and Foxconn will form several joint units covering design, technology, engineering, and manufacturing.
- Due to the rapid development schedule, both firms expect to come to an agreement on a formal partnership by the first half of 2021.
- Fisker’s Ocean electric SUV is expected to go into production in the fourth quarter of 2022.
- The interest in the Ocean continues to be strong, with more than 12,000 reservations made as of today worldwide.
- It is expected that later this year Fisker will unveil the Ocean’s production-intent prototype.