Benzinga | Oct 15, 2020 03:11PM EDT

Fisker Announces Magna As Partner On $37,499 Ocean SUV Ahead Of SPAC Merger

Fisker and Magna International (NYSE:MGA) on Thursday announced a partnership that will see Magna manufacture the Fisker Ocean SUV at its European vehicle assembly facility. Production will start in late 2022.

Magna is being issued warrants to purchase up to 6% of Fisker stock following the proposed business combination between Fisker and SPAC Spartan Energy Acquisition Corp (NYSE:SPAQ).

Related Link: Jim Cramer Compares Fisker And Its CEO To Nikola, Trevor Milton

Why It's Important: The release includes a note that the Ocean will start with a suggested retail price of $37,499.

Fisker will compete with Tesla Inc (NASDAQ:TSLA), a company that once employed CEO Henrik Fisker and even sued him over design secrets.

The Tesla Model X and Model Y mid-size SUVs retail for $74,690 and $45,690 after U.S. tax credits.

In the first half of 2020, Tesla sold 9,500 Model Xs and 18,861 Model Ys, according to CleanTechnica.

Magna is the leading brand-independent manufacturing partner for OEMs. The company has made over 3.7 million vehicles for 30 different models. Magna currently manufactures for BMW, Daimler, Jaguar Land Rover and Toyota Motors (NYSE:TM).

Price Action: Shares of Spartan Acquisition are down 3% Thursday to $13.88. Shares have traded between $9.75 and $21.60 over the last 52 weeks. Shares are down 18% in the last month.