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Electric Vehicle Maker Fisker Partners With Apple Supplier Foxconn

By Howard Smith - Feb 24, 2021 at 10:55AM

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The new project will target global markets.

Longtime Apple (AAPL -1.92%) supplier Foxconn Technology Group -- also known as Hon Hai Precision (HNHPF 1.66%) -- has signed a memorandum of understanding with start-up electric-vehicle maker Fisker (FSR -12.80%) to partner on a global project. 

Under the agreement, Foxconn plans to manufacture up to 250,000 electric vehicles (EVs) annually under the Fisker brand. Foxconn's connection to Apple leads to speculation whether a rumored electric car from Apple could end up being built by Foxconn. 

orange Fisker Ocean electric SUV

The Fisker Ocean electric SUV. Image source: Fisker.

Fisker and Foxconn say the project aims to build a vehicle that will target markets in North America, Europe, China, and India. The companies plan to begin production in the fourth quarter of 2023. Fisker CEO Henrik Fisker said in a statement, "We will create a vehicle that crosses social borders, while offering a combination of advanced technology, desirable design, innovation and value for money."

Fisker currently plans to begin delivering its all-electric Ocean SUV by the end of 2022. The Ocean will be a Fisker brand initially built in Europe by manufacturing partner Magna (MGA -3.36%). The Ocean SUV will use a modified version of a Magna-developed EV platform, Fisker said in announcing the manufacturing agreement. 

Fisker's new partnership with Foxconn seeks to use Foxconn's experience in information and communication technology (ICT). Fisker says the collaboration "will revolutionize the automotive industry model by introducing ICT capabilities," helping to create more efficient manufacturing and business models. The companies say the entire process, from research and development to production, will only take two years for Fisker's second vehicle. 

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Stocks Mentioned

Fisker, Inc. Stock Quote
Fisker, Inc.
FSR
$9.61 (-12.80%) $-1.41
Apple Inc. Stock Quote
Apple Inc.
AAPL
$140.36 (-1.92%) $-2.75
Magna International Inc. Stock Quote
Magna International Inc.
MGA
$60.41 (-3.36%) $-2.10
Hon Hai Precision Industry Co., Ltd. Stock Quote
Hon Hai Precision Industry Co., Ltd.
HNHPF
$7.34 (1.66%) $0.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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