Electric vehicle (EV) automaker Fisker Inc. (FSR) and Magna International Inc. (MGA) inked a long-term manufacturing deal to start the scheduled production of the Fisker Ocean SUV on November 17, 2022, on Magna’s carbon-neutral facility in Graz, Austria. Shares of Fisker jumped 3.3% to close at $18.33 on June 17. (See Fisker stock chart on TipRanks)

Both entities had entered into a cooperation agreement back in October 2020 related to electric vehicle platform sharing and Advanced Driver Assistance Systems (ADAS) packages.

Magna is a mobility technology company, which supplies to the automotive industry. Magna hosts a world-class manufacturing facility in Graz, Austria, where they have produced more than 3.7 million vehicles for several global automakers.

Fisker Chairman and CEO, Henrik Fisker said, “We continue to strengthen our partnership beyond platform development and manufacturing into areas such as the development of Fisker Intelligent (FI) Pilot.”

Fisker added, “Our asset-lite model, reinforced by partners like Magna, is powering Fisker towards its planned delivery of the Ocean with features and functions exceeding our original aspirations.”

The new deal encompasses all stages of the program’s life cycle through 2029, including planned volumes, production costs, and quality measures.

The deal strengthens the partnership between both the companies, enhancing production efficiencies and cost innovations, and also provides opportunities to boost the volume of the Ocean and other FM29 architecture versions.

The FM29 platform is a Magna-developed electric vehicle architecture combined with Fisker developed intellectual property (IP), which will enable the Ocean to enter the market at a starting manufacturer’s suggested retail price (MSRP) of $37,499 in the United States (excluding EV-related subsidies), and below €32,000 in Germany (including taxes and EV-related subsidies), as well as offering compelling, high-value option packages to customers across the Ocean’s entire price range.

Last month, R.F. Lafferty analyst Jaime Perez maintained a Buy rating on the stock but lowered the price target to $19 (3.7% upside potential) from $24.

Perez noted that he was optimistic about FSR as it was moving progressively towards its contract with Magna for the production and delivery forecast of the Fisker Ocean in the fourth quarter of 2022.

Wall Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 5 Buys, 2 Holds, and 1 Sell. The Fisker average analyst price target of $24.29 implies 32.5% upside potential to current levels. Shares have gained 77% over the past year.

Related News:
Citi’s Shares Drop as CFO Warns of Rising Expenses and Falling Revenue – Report
GM to Boost EV and AV Spend to $35B; Raises 1H21 EBIT Outlook
Baidu to Launch Apollo Moon Robotaxi, Plan Mass Production at Affordable Cost

More recent articles from Smarter Analyst:

By ev3v4hn