Fisker Inks Deal with Apple Manufacturer Foxconn to Build Electric Cars

Zac Estrada

Zac Estrada is a reporter covering transportation, technology and policy. A former reporter for The Verge and Jalopnik, his work has also appeared in Automobile Magazine, Autoweek, Pacific Standard, Boston.com and BLAC Detroit. A native of Southern California, he is a graduate of Northeastern University in Boston. You can find him on Twitter at @zacestrada.

Fisker
Fisker

Fisker Inc. wants to make an electric car for global markets, and it plans to team with a manufacturer of Apple devices to make it a reality in less than three years.

Foxconn, the Taiwanese electronics producer, and the Manhattan Beach-based automaker announced Wednesday that the two companies signed a memorandum of understanding to develop and build an electric car toward the end of 2023 destined for not only North America and Europe markets, but also China and India. Fisker will lean on Foxconn's experience with supply chain for electric components, while it likely focuses on design. A formal partnership is expected sometime in the second quarter.


Dubbed Project PEAR (Personal Electric Automotive Revolution), the new electric cars are expected to be developed in 24 months, a rapid schedule for an automotive product. It will be the second vehicle for the startup after the Fisker Ocean, an all-electric SUV set for production in 2022 with 300 miles of range.

The electric vehicle company released a sketch of the vehicle along with the announcement, which didn't reveal much more than an outline tall, compact vehicle. Few other details, including target price range, were shared. It's unclear if it will start below the roughly $37,000 price for its planned Ocean SUV.

"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," Fisker Chairman and CEO Henrik Fisker said in Wednesday's announcement.

Foxconn said it wants to make 250,000 vehicles per year. It may manufacture Project PEAR in its Wisconsin factory that broke ground in 2018, according to The Wall Street Journal. The Ocean is set to be built in Austria at a factory that currently builds cars for BMW, Jaguar and Mercedes-Benz.

"The key success elements of electric vehicle development include the electric motor, electric control module and battery," Young-Way Liu, Foxconn Technology Group chairman said in the announcement. "We have two major advantages in this regard, with an exceptional vertically integrated global supply chain and the best supply chain management team in our industry."

Fisker, which went public last year, said it has 12,000 paid reservations for the Ocean, and that a production version, of which a prototype has already been shown, would be unveiled later this year.

Shares of the company were up 29.77% to $21.17 in mid-day trading. The startup faces challenges in the EV market as established automakers, from Ford to Kia, have recently released new models in the Ocean's price range, and more states look to ban sales of new gasoline-powered vehicles altogether.

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Henrik Fisker Says Tesla Price Cuts Haven’t Fazed Ocean Rollout

David Shultz

David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.

A Fisker electric vehicle.​
Courtesy of Fisker

Last week in the dot.LA newsletter I wrote about Tesla’s decision to slash prices by as much as 20% on their vehicles and how the decision might impact Southern California’s EV startups. I called the price cuts a “tough pill to swallow” for Fisker in particular since they would make many of Tesla’s price points more competitive with Fisker’s first production model, The Ocean.

The Ocean is currently undergoing homologation, but Henrik Fisker, the company’s CEO, confirmed to dot.LA that the company hopes the process to be completed at the end of February. From there, it could take several weeks to ship the SUVs from Austria to the United States.

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Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. During Spencer's time as CEO, Zillow won dozens of "best places to work" awards as it grew to over 4,500 employees, $3 billion in revenue, and $10 billion in market capitalization. Prior to Zillow, Spencer co-founded and was VP Corporate Development of Hotwire, which was sold to Expedia for $685 million in 2003. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 100 companies and is incubating several more.

​Diankha Linear
Diankha Linear

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LA Tech ‘Moves’: Dreamscape, LinQuest and PetDX Gain New CEOs

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

LA Tech ‘Moves’: Dreamscape, LinQuest and PetDX Gain New CEOs

“Moves,” our roundup of job changes in L.A. tech, is presented by Interchange.LA, dot.LA's recruiting and career platform connecting Southern California's most exciting companies with top tech talent. Create a free Interchange.LA profile here—and if you're looking for ways to supercharge your recruiting efforts, find out more about Interchange.LA's white-glove recruiting service by emailing Sharmineh O’Farrill Lewis (sharmineh@dot.la). Please send job changes and personnel moves to moves@dot.la.

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