Fisker shares jumped more than 18% to $19.23 on Wednesday after the company said it has struck a deal with Hon Hai Technology Group, better known as Foxconn, to produce its second to-be-named vehicle. Foxconn is best known as a supplier of parts for Apple's (AAPL) - Get Report iPhone.
In a statement, Fisker said it has signed a memorandum of understanding with Taipei-based Hon Hai Technology to work on what it calls Project PEAR, a new personal EV that it calls a “breakthrough electric vehicle.”
Under the arrangement, Foxconn will manufacture the vehicle at projected annual volumes of more than 250,000. Production of the to-be-named personal vehicle will begin in the fourth quarter of 2023.
“We will create a vehicle that crosses social borders, while offering a combination of advanced technology, desirable design, innovation and value for money, whilst delivering on our commitment to create the world’s most sustainable vehicles,” CEO Henrik Fisker said in a statement.
Project PEAR marks Fisker’s second formal foray into the mass-production EV market. The Los Angeles-based company is already ramping up to begin production on its first vehicle, the Ocean electric SUV, in the fourth quarter of 2022. Fisker has collected more than 12,000 global paid reservations for the Ocean.
Henrik Fisker added a bit more mystery to its deal with Foxconn on Twitter, tweeting on his personal account that the vehicle "is so revolutionary that we HAVE to keep is secret until the launch in end of 2023! It might be too futuristic for some! We will see!"
Fisker went public in October via a special-purpose-acquisition company that netted the car company more than $1 billion in cash. The stock has more than doubled since.
Fisker is set to report its first quarterly earnings as a public company after the closing bell on Thursday.