Shares of Fisker (NYSE: FSR) are 26% higher premarket on Wednesday after the company announced it has entered into a memorandum of understanding with Apple Partner, Foxconn.
The two companies will work together to develop a new segment vehicle, with Foxconn manufacturing the vehicle at annual volumes of more than 250,000.
They are looking at markets including North America, Europe, China, and India, with production projected to begin in Q4 2023.
If successful, it will be the second vehicle introduced by the Fisker brand following the Ocean SUV's expected launch, which is anticipated in Q4 2022.
“The creation of Project PEAR with Foxconn brings together two like-minded and complementary companies, each focused on creating new value in a traditional industry,” commented Fisker Chairman and CEO Henrik Fisker.
The firms said that following the MOU signing, teams from both Fisker and Foxconn will establish several workstreams focused on design, technology, engineering, and manufacturing. Due to a rapid development schedule, both companies expect to conclude discussions and enter into a formal partnership agreement during Q2 2021.
Fisker shares are sitting at $20.60 premarket, up 26.46%.