- Fisker Inc. soared 26% on Wednesday after it said it will collaborate with Foxconn to develop and manufacture electric vehicles.
- Fisker and Foxconn will develop Fisker’s second vehicle, which it expects to start production in the fourth quarter of 2023.
- Foxconn is expected to manufacture the vehicle at annual volumes of more than 250,000.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
Fisker Inc. soared as much as 26% on Wednesday after it said it entered a memorandum of understanding with Foxconn to jointly develop and manufacture an electric vehicle.
The vehicle will be Fisker’s second EV model, after its Ocean electric SUV, which is expected to be launched next year and is being manufactured in partnership with Magna.
Foxconn is best known as the Chinese manufacturer of Apple’s iPhone, and is the world’s largest electronics manufacturer.
The proposed collaboration is targeting an annual production rate of 250,000 electric vehicles, with the start of production expected in the fourth quarter of 2023. The vehicles being built by Foxconn will be sold in North America, Europe, China and India, according to Fisker.
Fisker is staying true to its go-to-market strategy, which is comprised of designing electric vehicles, but outsourcing all of the production to contract manufacturers rather than build the vehicle itself.
“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,” said Foxconn chairman Young-way Liu.
Both Fisker and Foxconn expect to sign a formal partnership in the second quarter.