Do you know Fisker? If not, you should get to know this automaker and see what they have to offer and what’s going on with this brand.
Entering the fourth quarter of 2020, Fisker announced it would go public and be listed in the New York Stock Exchange under “FSR” which was finalized on October 30. The decision to be taken public was part of a merger/acquisition by Spartan Energy Acquisition Corporation.
Magna is Part of the Deal
While Magna may not have any investment in Fisker, as this company goes public in Q4 2020, an announcement was made that informed us that Magna would provide the vehicle platform and build the Ocean SUV for Fisker. As part of the deal, Magna will receive the opportunity to purchase up to six percent of Fisher, which brings the overall valuation of this automaker to $2 billion.
An Immediate Goal for Fisker
Because of the partnership with Magna, the Fisker team can turn their attention to developing and launching a revolutionary all-electric SUV in the midsize segment. This is where the Fisker Ocean will reside. The development of this vehicle has already begun and the Ocean should be offered in the markets it will be sold in by the fourth quarter of 2022. This gives Fisker two years to develop and show off the new SUV.
Cash Will be Available for Product Development
The result of the new transactions by Fisker and the announcement to go public allows this company to have in excess of $1 billion in cash on the balance sheets with no funded debt. This means the company can fully find the operations and development of this new SUV that will become part of the automotive world late in 2022 and offered for the 2023 model year.
Fisker and Spartan Make a First Entry into Europe
The merger between Fisker and Spartan came with a deal to build the Ocean in Europe. This will mark the first time Magna has entered a contract manufacturing for an EV startup and building the product in Europe. Magna is a Canadian company and it has built vehicles for traditional automakers for years, but never for an EV company and in Europe, which will be a first for Fisker and Spartan as well.
An Immediate Impact of the Public Announcement
Immediately after announcing that Fisker was going to be traded on the public exchange, the stock price rose more than ten percent on the first day. This shows quick investment by the public and confidence that a merger that brings Fisker, Spartan, and Magna together will be a huge success. With tons of cash and two years to create the EV SUV, we’ll see, these three are off to a great start.
Are you looking for new stock to invest in? Do you want to put your money into a company with a strong history that is new on the stock market? Check out the stock under “FSR” and see if this will be the stock you want to invest in to help build your stock portfolio.
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