The companies have previously signed an agreement to work together in February 2021. The parties are now busy preparing for the production of a revolutionary electric vehicle.
Electric car maker Fisker rose 14%, hitting $ 11.35 during premarket Friday. The stock rally began after the head of Fisker tweeted about the closure of a deal that was signed between his company and Foxconn in February 2021.
So, the companies are going to produce 250 thousand cars a year starting from 2023. One of the most important points of the agreement involves the location of an electric vehicle manufacturing facility in America. The companies have previously said that production is likely to take place in Wisconsin, where Foxconn is already building a factory and recently won new tax breaks from the state.
As part of the PEAR (Personal Electric Car Revolution) project, the companies plan to create and produce a car for no more than $ 30,000. The car will represent “a revolutionary car in a new segment,” says a TechCrunch spokesman.
This is Fisker’s second EV contract. He previously signed an agreement with the Canadian Magna International. Under the agreement, the company will produce Fisker’s flagship SUV, the Ocean. The first cars are expected to roll off the assembly line in the fourth quarter of 2022.