The platform-sharing and initial manufacturing agreement clarifies and finalizes key aspects of a framework deal achieved two months ago.
The Fisker Ocean will initially be manufactured exclusively by Magna in Europe, where it currently produces several high-quality vehicles on behalf of global brands.
Global paid reservations for the Ocean stands at more than 10,400. Fisker plans to unveil a production-intent prototype of the Ocean in the summer of 2021. CEO Henrik Fisker said the companies plan to begin delivery of the the all-electric Ocean in Q4 2022 with a starting price of $40,000.
The Fisker Ocean SUV will use a modified version of a Magna-developed EV platform.
“Taking Magna’s EV platform as the starting point, Fisker engineers are further developing FM29 and in the process creating new IP that is unique to Fisker,” according to Fisker. “To suit our requirements for the Ocean and other vehicles, we are redesigning the front-end structure and both lengthening and widening the platform.”
Fisker added that the FM29 provides the flexibility to accommodate a large battery that would support an Ultra Long Range with a potential range of more than 350 miles.
Shares rose 4.1% to 15.97 on the stock market today, bouncing further above the 50-day line. The stock hit an all-time high of 23.63 intraday on Nov. 27 but has since retreated considerably, according to MarketSmith chart analysis. Its relative strength line has fallen sharply in recent weeks but is trending upward. Magna rose 0.6%.
Fisker stock went public on Oct. 30, following a blank-check merger with Spartan Energy. The deal valued Fisker at $2.9 billion.
Henrik Fisker launched the eponymous company in 2016. That came after an earlier venture went bankrupt. The now-defunct business produced a luxury plug-in hybrid electric Fisker car. However, the company discontinued the Karma EV due to poor sales.
Fisker’s solidified manufacturing plans come as other recently public EV stocks made key moves too.
On Wednesday, Lightning eMotors unveiled a new model of its popular Class 3 Lightning Electric Transit Van. GigCapital3 (GIK), a blank-check company, is taking Lightning eMotors public through a merger.
Barclays analyst Brian Johnson initiated coverage of Hyliion Holdings (HYLN) with an overweight rating and 20 price target.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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