EV: Here’s why Fisker stock price exploded 40% yesterday

Shares of Fisker (NYSE: FSR) soared more than 38% yesterday after the company announced a partnership with Foxconn to build electric vehicles (EVs).

Fundamental analysis: Major partnership

Foxconn, a Taiwanese tech firm whose biggest client is Apple, said it will develop an EV together with Fisker as it continues with aggressive efforts to increase its EV exposure. Two companies said that a new car will be sold under the Fisker brand but will be designed and manufactured by Foxconn. The production is scheduled for 2023.

Last week, Foxconn Chairman Liu announced the company’s plans to present two new light EVs built on Foxconn’s platform. They are likely to be rolled out in Q4 this year. This platform was introduced back in October with a goal to help EV producers to launch cars faster.

Two companies have plans to produce a quarter of million of units per year.

Technical analysis: Fisker stock explodes

Fisker stock price exploded about 40% yesterday to print a new all-time high at $23.75. The price action is now trading over 50% higher in February. The area that sits just below the $24 is likely to continue providing key resistance buyers. 

This zone hosts the old record high of $23.63 while $23.85 is where the 161.8% Fibonacci extension line is located. On the downside, any pullback is likely to end around $20.70, where the horizontal support line is located.  

Summary

Apple supplier Foxconn and EV company Fisker will work together to build an electric vehicle starting from 2023.