By Dhirendra Tripathi – Fisker (NYSE:FSR) soared 11% in Tuesday’s premarket following a strong bull case made out for the stock by a Morgan Stanley analyst a day earlier.

Analyst Adam Jonas resumed coverage on the electric vehicle maker with an ‘overweight’ and a target of $40, an upside of 166% from the stock’s Monday closing price of $15.03. The analyst also set a new $90 bull case for the stock.

The analyst views Fisker’s focused strategy on design and engineering and supply chain as a big attraction. He views the company as one of the only EV-related startups to launch on time with Ocean. The SUV is scheduled for launch in late 2022.

Jonas believes Fisker’s tie-up with Magna-Steyr will help in contract manufacturing and accelerate time to market while providing a path to scale and profitability when the demand begins to exceed supply of EVs.

Fisker and Magna tied up in January to develop an Advanced Driver Assistance System for Ocean. In addition to leveraging cameras and ultrasonic sensors, the ADAS package includes a unique and first-to-market digital imaging radar technology.

The shared/vested interest and Fisker's design and experience, combined with reasonable valuation underpins the ‘overweight, Jonas wrote in his note.

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