|Bid||22.76 x 1100|
|Ask||22.65 x 2200|
|Day's Range||18.36 - 23.75|
|52 Week Range||8.70 - 23.75|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||21.50|
(Bloomberg) -- Foxconn Technology Group will develop an electric vehicle with Fisker Inc., part of the manufacturer’s efforts to boost its automotive capabilities at a time when technology companies including its main customer Apple Inc. are looking to expand in vehicles.The car will be built by Foxconn, targeted at multiple markets including North America, Europe, China and India, and sold under the Fisker brand, according to a joint statement from the companies Wednesday. Production is set to start in the fourth quarter of 2023.Shares of Fisker rose 35% to a three-month high of $22.02 as of 1:50 p.m. in New York.Taiwan’s Foxconn, whose main listed arm is Hon Hai Precision Industry Co., in October introduced its first-ever EV chassis and a software platform aimed at helping automakers bring models to the market faster. This month, Hon Hai Chairman Young Liu said two light vehicles based on the Foxconn platform will be unveiled in the fourth quarter. Foxconn is also planning to help launch an electric bus around the same time.The Taiwanese company is expected to build more than 250,000 vehicles annually for the Fisker partnership, according to the statement. Foxconn may choose to make some of those cars in the U.S., a person familiar with the matter said. Following Wednesday’s memorandum of understanding, the two sides said they will enter a formal agreement in the second quarter of 2021.Fisker is the second battery-powered car venture founded by longtime auto designer Henrik Fisker, and its debut model, the Ocean electric SUV, is scheduled to start production in late 2022. Henrik Fisker’s first venture, Fisker Automotive, filed for bankruptcy in 2013.Foxconn is the second major manufacturer Fisker has announced a partnership with since reaching a deal to go public last year. In October, the EV startup said Magna International Inc. would help it build the Ocean SUV.In January, Foxconn signed a manufacturing deal with embattled Chinese electric-vehicle startup Byton Ltd. with the aim to start mass production of the Byton M-Byte by the first quarter of 2022. A week later, Foxconn and Zhejiang Geely Holding Group Co. announced they are joining forces to provide production and consulting services to global automotive enterprises.Amid reports of Apple’s car project gaining momentum, Foxconn has bulked up its automotive capabilities that could make it a major contender to make cars for its largest customer.With development work still at an early stage, Apple will take at least half a decade to launch an autonomous electric vehicle, people with knowledge of the efforts have told Bloomberg News. That suggests the company is in no hurry to decide on potential auto-industry partners.(Updates with Fisker shares in third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Fisker Inc. stock rallied on Wednesday after the EV maker's deal with Foxconn Technology Group brings focus to its strategy of becoming the 'Apple' of autos and diversifies its production.
Shares of Fisker shot up by 22.3% in pre-market trading on Feb. 24 as the designer and manufacturer of electric vehicles (EVs) entered into a memorandum of understanding (MOU) with Hon Hai Technology Group (Foxconn) to develop a “breakthrough” EV. The EV project has been codenamed ‘Project PEAR’ (Personal Electric Automotive Revolution). Fisker’s (FSR) Chairman and CEO Henrik Fisker said, “The creation of Project PEAR with Foxconn brings together two likeminded and complementary companies, each focused on creating new value in a traditional industry. We will create a vehicle that crosses social borders, while offering a combination of advanced technology, desirable design, innovation and value for money, whilst delivering on our commitment to create the world’s most sustainable vehicles.” FSR and Foxconn intend to jointly develop the EV, and production is expected to begin in the fourth quarter of 2023. Foxconn will manufacture the vehicle at projected annual volumes of 250,000. Both companies expect that this project has a global scope in different markets including Europe, China, India and North America. Both FSR and Foxconn expect to enter into a formal partnership agreement during the second quarter of this year. (See Fisker stock analysis on TipRanks) Around a week ago, R.F Lafferty & Co analyst Jaime Perez initiated coverage with a Buy rating and a price target of $23. Perez said, “The company is developing the Fisker Ocean, an all-electric midsize luxury SUV for the consumer market with an MSRP [manufacturer suggested retail price] between $37,499-$69,900. Fisker will introduce a prototype of the Ocean all-electric SUV in mid-2021. Then, the company will launch production of the Ocean in late 2022.” “Also, the company is simplifying the auto purchasing experience to consumers by using a directto-consumer sales model, which skips the traditional OEM-dealer model. This sales model is based on a digital platform where potential buyers may place a reserve on the Ocean through the Fisker app or on the company’s website. In addition, the company plans to offer flexible leasing where consumers may elect to cancel their auto lease early,” Perez added. The rest of the Street is cautiously optimistic on the stock with a Moderate Buy consensus rating. That’s based on 2 Buys and 2 Holds. The average analyst price target of $21.33 implies 30.9% upside potential to current levels. Related News: Macy’s Beats 4Q Sales Estimates, Sees Recovery In 2021; Shares Drop 2.6% Upwork Posts Better-Than-Expected 4Q Results; Shares Pop 18.7% After-Hours Five9 4Q Pops 10% Pre-Market On Blowout Quarter More recent articles from Smarter Analyst: Pebblebrook Reports Worse-Than-Expected 4Q Loss Amid Pandemic; Street Sees 10.8% Downside Blink Awarded EV Charging Station Network Contract In Vermont Lowe’s Surpasses 4Q Estimates; Plans $9B Share Buyback In 2021 Tabula Rasa’s 4Q Sales Beat Estimates; Street Sees 18% Upside