When SPACs imploded last week, lead by Churchill’s (NYSE:CCIV) dilutive merger deal, Fisker (NYSE:FSR) bucked the trend. The electric vehicle SPAC stock signed another supply deal that will bring it closer as a global leader.
Fisker announced that it will collaborate with iPhone supplier Foxconn to collaborate on an EV project. Codenamed Project PEAR (Personal Electric Automotive Revolution), Foxconn will produce over 250,000 units annually. The scope is aggressive. The global plans include targeting North America, Europe, China, and India. Fisker CEO Henrik Fisker said, “We created our company to disrupt every convention in the auto industry.”
FSR stock soared by 58% last week and is more than double its 52-week low. The deal with Foxconn adds credibility to this EV firm after it forged a deal with Magna (NYSE:MGA). Magna will supply the autonomous technology or ADAS for Fisker.
Investors are hungry for EV stocks. Despite Nio (NYSE:NIO), Li Auto (NASDAQ:LI), Tesla (NASDAQ:TSLA), and Xpeng (NYSE:XPEV) stock all declining sharply, Fisker’s smaller relative size suggests this is the EV stock to own.
As Fisker rolls out its first EV, the market cap will grow after it attracts more investors. It will get bigger and financially stronger, driven by strong demand for its EVs.
