EV Maker Fisker Signs Manufacturing Deal With Foxconn

Electric vehicle (EV) maker Fisker Inc. (NYSE: FSR) announced Wednesday that it had signed a memorandum of understanding with Hon Hai Technology Group, better known as Foxconn, under which the Taiwan-based manufacturing firm will manufacture a jointly developed vehicle sold under the Fisker brand.

Fisker came public in late October as a result of a reverse merger with a blank-check company affiliated with Apollo Management. At the time of the IPO, Fisker also announced a manufacturing agreement with Magna Steyr to build the company’s first vehicle, the Ocean, that would go on sale in late 2022 for a retail price of around $37,500.

The agreement with Foxconn offers some details of a “breakthrough electric vehicle” that is projected to begin production in late 2023. The announcement included a design sketch that Fisker founder and CEO Henrik Fisker said “hints at the direction we are taking. However, with the level of innovation planned for this vehicle, I intend to keep the final design a surprise until the last possible moment!”

Foxconn Technology Group Chairperson Young-way Liu commented: “The collaboration between our firms means that it will only take 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 is the primary assembler of Apple’s iPhones.

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Fisker’s first EV, the Ocean, has attracted more than 12,000 paid reservations, and the company said it plans to reveal a “production-intent prototype” later this year.

Fisker was one of some half-dozen EV makers to come public last year. The shares reached a peak of $23.63 in late November and had drifted downward to close at $16.29 on Tuesday. In Wednesday’s premarket session, the stock traded up more than 25% at $20.30. The 52-week low is $8.70.

The announcement comes one day after another EV maker, Lucid Motors, announced a business combination that is expected to bring it to the public markets in the second quarter of this year in a deal that values the company at around $11.75 billion.

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