RIDE - Why Is Fisker (FSR) Stock Climbing Higher Today?
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Fisker (NYSE:FSR) stock is on investors’ radar this morning. Another EV company, Lordstown Motors (NASDAQ:RIDE), wrapped up a deal yesterday to sell its Ohio plant to a giant Taiwan-based manufacturer, Foxconn. In the wake of that agreement, RIDE stock is soaring 8% this morning.
Fisker and Foxconn are partnering on the development of Fisker’s second EV, the Fisker PEAR. A relatively affordable electric vehicle, the PEAR will sell for less than $30,000. The EV startup confirmed today that Foxconn will produce the PEAR at the plant that it just acquired from Lordstown. Foxconn paid $230 million for the facility.
FSR Stock Rides Lordstown’s Cash Infusion Higher
Production of the PEAR is expected to begin in 2024. Fisker anticipates that Foxconn’s plant will eventually manufacture “a minimum of 250,000 Fisker PEAR units a year.”
Calling the PEAR “revolutionary,” CEO Henrik Fisker explained in a statement that “its exterior design will feature new lighting technology and a wraparound front windscreen inspired by a glider plane glass canopy, enhancing frontal vision.”
In a May 4 column, InvestorPlace Assistant Financial News Writer Shrey Dua was also very bullish about Fisker’s third EV, a sports car that Dua labeled “a potential Tesla Roadster ‘killer.'”
For its part, Lordstown will be able to stay in business due to the funds that it will receive from Foxconn in exchange for the plant in Ohio. The Taiwanese manufacturer plans to assemble Lordstown’s electric truck, the Endurance, at the factory.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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