Electric-car maker Fisker (FSR) has inked a vehicle-assembly deal with Foxconn Technology with plans to open a U.S. plant in 2023, the companies said on Thursday. Fisker stock rose.
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The new electric vehicle will be jointly developed and sold under the Fisker brand into global markets including North America, Europe, China and India.
The plant’s U.S. location has not been chosen. But several states are in the running, including Foxconn’s site in Wisconsin. The companies project annual volumes to exceed 250,000 across multiple sites. Production is expected to begin in the fourth quarter of 2023.
Taiwan-based Foxconn is a global technology manufacturer that assembles iPhones for Apple (AAPL) and makes the Xbox gaming console for Microsoft (MSFT). It also owns well-known consumer tech brands like Belkin and Sharp.
Dubbed Project PEAR, Fisker will unveil a prototype of the vehicle at the Los Angeles Auto Show later this year. The vehicle will be the company’s second production model. It will have a starting price of less than $30,000, before incentives. Fisker is slated to start production in Europe on its first vehicle, the Ocean electric SUV, in Q4 2022.
CFRA Research analyst Garrett Nelson views the announcement as a „much-needed catalyst for the shares, which have languished over the last few months along with EV bellwether Tesla.“
Nelson says that with Fisker’s enterprise value having dropped below $2 billion, investors are underestimating its future cash flow potential and larger market opportunity. Nelson raised his rating on Fisker stock to strong buy from buy and maintained his 30 price target.
„The experience of management, the Ocean’s attractive specs, and its partnerships with manufacturing giants Magna and Foxconn set it apart from other EV startups,“ he said.
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Fisker Stock
Shares rallied 5.5% to close at 10.50 on the stock market today. Fisker stock broke out past a 23.73 buy point from a cup based on Feb. 26 to close at 28.50, according to MarketSmith chart analysis. But the breakout failed, as the stock quickly reversed. Shares have tumbled 64% since then.
Fisker stock is trading well below its 50-day line, which itself is sloping down, as well as the 200-day line. The relative strength line took a dive in early March.
Among other EV startups, Lordstown (RIDE) rose 5% Friday, and Canoo (GOEV) gained 2.4%. Top EV producer Tesla (TSLA) rose 3.2%.
Meanwhile, EV battery maker QuantumScape (QS) said Friday that it has entered into an agreement with Volkswagen (VWAGY) to select the location of their joint-venture solid-state battery pilot-line facility by the end of 2021. Salzgitter, Germany, appears to be the front-runner.
The pilot-line facility, QS-1, will initially be a 1-gigawatt hour (GWh) battery cell commercial production plant for EV batteries. QuantumScape and Volkswagen plan to expand production capacity by a further 20 GWh.
In March, QuantumScape announced an additional $100 million in funding from Volkswagen after the carmaker confirmed through tests at its labs in Germany that QuantumScape cells met the established technical milestone.
QuantumScape stock added, and VW picked up 3.3%.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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