Written by Norman Isaac Mwambazi

EV Start-up Fisker stock surges on news of partnership with Apple partner to launch new electric car in 24 months

Late last year, we reported that Apple Inc., the tech giant notably known for designing and manufacturing the high-end iPhone …

Late last year, we reported that Apple Inc., the tech giant notably known for designing and manufacturing the high-end iPhone line of smartphones among other electronic products and internet services was, and still is, on course to produce a self-driving passenger car by 2024. Sources at the tech firm said that this vehicle could include Apple’s breakthrough battery technology.

It should be noted that Apple conceived the idea and plan of designing and manufacturing cars from scratch in 2014 under Project Titan, but progress was stalled when the company decided to focus on software and reassessed its goals.

In 2018, the company’s vehicle design plans were taken off the shelf and back to the design table with the return of Apple veteran Doug Field, who had worked at automaker Tesla Inc. Doug restructured the Project Titan design team and laid off 190 people in 2019.

Since then, there has been (silent) progress of the project as the company looks at building a vehicle for consumers.

Today, Wednesday, February 24, 2021, Los Angeles-based EV start-up Fisker and Apple partner, Foxconn, a Taiwan-based electronics manufacturer announced that they are set to collaborate on an electric vehicle project. This announcement made Fisker’s stock surge.

The two companies Fisker and Foxconn signed a memorandum of understanding to “develop a breakthrough electric vehicle,” in a collaboration code-named “Project Pear” (Personal Electric Automotive Revolution), according to a press release.

The vehicle, which is yet-to-be-named, will be developed and sold under the Fisker brand, including through the Fisker Flexee Lease program, and will be available in multiple global markets including Europe, India, North America, and China. The companies plan to produce 250,000 cars annually.

Unlike Apple Inc., which projects to have its first car in 2024, Fisker and Foxconn say it will take just 24 months to produce the next Fisker vehicle – from research and development to production. This is half of the traditional time required to bring a new vehicle to market.

Foxconn and Fisker expect to conclude discussions and enter into a formal partnership agreement during Q2 FY2021 and start production in Q4 FY2023.

Fisker Stock

Shares gapped up 36.22% to $22.16 on high volume on the stock market today ahead of the company’s quarterly earnings report late Thursday. Fisker stock, which is trading well above its 50-day line, is forming a cup base with a buy point of $23.73, according to MarketSmith chart analysis. The relative strength line is trending upward.

Other EV makers like Tesla rose 4% today after falling 24% from a high of $900.40 intraday over a month ago. Nio rose 2.8%, Li Auto 2.6%, but Xpeng dropped 1.5%.

This will be Fisker’s second vehicle, following the launch of the Ocean SUV that is set to go into production in Q4 2022. The company says it has more than 12,000 global paid reservations for the Ocean SUV to date. It plans to unveil a production-intent prototype of the Ocean later this year.

For the design and development of the Ocean SUV, Fisker partnered with Magna International (MGA). With a starting price of $40,000, the car will use a modified version of a Magna-developed EV platform.

Fisker has a market capitalisation of $6.48 billion, and it went public on October 30, 2020, after merging with Spartan Energy.

https://twitter.com/henrikfisker/status/1364552854447353856

Fisker Inc. was founded and launched by Danish automotive designer and entrepreneur Henrik Fisker in 2016. Fisker is best known for designing luxury cars including the BMW Z8, Aston Martin DB9, and Aston Martin V8 Vantage among others, and he currently serves as the company’s Chief Executive Officer (CEO).