Fisker soars 17% after reaching deal with Foxconn for development of an electric vehicle

• Fisker shares revved up 17% on Friday after the company and Foxconn finalized agreements to develop a "breakthrough" electric vehicle.
• Production of the vehicle is expected to begin in 2023 in the US.
• Fisker is aiming to begin production on its Ocean SUV in Europe in 2022.

Shares of Fisker sharply jumped Friday after the company finalized a deal to jointly develop and manufacture electric vehicles with Foxconn, the manufacturer of Apple iPhones.

Financial terms of the agreements were not disclosed. The companies will invest in a program named Project PEAR, or Personal Electric Automotive Revolution, that's aimed at creating a "new breakthrough electric vehicle," they said in a statement issued late Thursday. The vehicle will have a starting price of less than $30,000 before incentives and be sold under the Fisker brand.

Shares of Fisker popped up 17% to $11.65. The stock this year had turned lower for a loss of about 32%.

The vehicle will be sold in markets including North America, Europe, China, and India, and manufacturing is slated to begin in the US in 2023. Fisker is preparing to begin production on its first vehicle, the Ocean SUV, in Europe in the fourth quarter of 2022.

Fisker and Taiwan-based Foxconn, also known as Hon Hai Precision Industry Co, said they are considering "several" manufacturing locations and are studying other factory sites for future manufacturing. Each company will take proceeds upon the program's successful delivery.

"At under $30,000 with stunning design and innovation, we are rethinking the car, both in terms of proportions, design, interior functionality and connected user experience," said Henrik Fisker, Fisker's CEO, in the joint statement.