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.
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.