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Fisker Shares Rally On $30,000 EV Partnership With Foxconn

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Fisker Shares Rally On $30,000 EV Partnership With Foxconn

Fisker Inc (NYSE: FSR) revealed details of its partnership with Foxconn that was announced back in February.

What Happened: Fisker and Foxconn signed a joint venture called Project PEAR (personal electric automotive revolution) that will bring an electric vehicle to market for under $30,000 to markets including North America, Europe, China and India.

Manufacturing in the United States will begin with several locations under consideration. Global manufacturing sites are also under study for additional production and annual volume capacity of 250,000.

“This is one of the lead places we are looking at,” Fisker CEO Henrik Fisker said on CNBC of the state of Wisconsin. The company has offers from three other states and will announce a location in the coming months.

The venture is expected to start production in the fourth quarter of 2023 and will follow the launch of the Fisker Ocean SUV in partnership with Magna International (NYSE: MGA).

“Our partnership with Foxconn enables us to deliver those industry firsts at a price point that truly opens up electric mobility to the mass market,” said Henrik.

Fisker highlighted the chip shortage the automotive industry is seeing as a key positive of the venture with Foxconn as Fisker claims it won’t ever run out of chips.

“Foxconn I believe is going to become more and more important in the automotive world.”

FSR Price Action: Shares of Fisker are up 12% to $11.16 in after-hours trading.

Disclosure: The author is long shares FSR.

Photo courtesy of Fisker.

 

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