Under the term of the deal Magna's stake increases as various milestones are reached, including start of production.
Fisker will be listed publicly on the New York Stock Exchange starting on Oct. 30 with the ticker FSR after completing a merger with Spartan Energy Acquisition, a special acquisition company, or SPAC, that is already publicly listed.
The merger will hand Fisker $1 billion to develop the Ocean.
Although the Ocean will start at $37,500 in the U.S., the average sale price will likely be closer to 50,000 euros as customers choose "sports" versions and add options such as a third row of seats, Fisker said.
The Ocean will compete with compact electric SUVs such as the Volkswagen ID4 and Tesla Model Y.
Fisker said that his company and Magna are still jointly negotiating battery contracts for the platform, but he said the Ocean would accommodate a big enough battery to offer a longer range than the Model Y, which can travel up to 480 km (298 miles) on a single charge on the WLTP testing cycle, according to Tesla's estimate.
The deal with Magna to manufacturer the Ocean will give company an advantage over other startups.
"Manufacturing is the most critical part," Fisker said. "It's a little naive to think you can start a car company and manufacture a car as well as Magna, or Toyota or VW."
Magna is also working with Fisker on the electrical architecture, another cost-critical component of a modern car. The two have set up a software development center in California called Source Code headed up by Burkhard Huhnke, a former head of e-mobility at Volkswagen of America.
Fisker said the division would develop software to be able to deliver technology such as over-the-air updates and automated safety systems.
Fisker said it has taken more than 8,000 deposits for the Ocean, with most interest so far coming from the U.S. He said that he expected European interest to pick up closer to launch. The final production car will be unveiled next year, Fisker said.
The Ocean is described as being the size of a BMW X3 midsize SUV with the interior space an X5 large SUV. Quirks of the car include a so-called "California mode" that allows the windows to drop at the same time at a touch of a button.
Fisker has said the company is planning three models, some of which will use the same Magna platform.
The company will bring down its break-even point by selling emissions credits in Europe to manufacturers that need to reduce their average CO2 levels to meet targets, Fisker said.
He said the company was already getting requests from automakers to pool CO2 emissions. This would allow automakers to avoid penalties for missing European Union greenhouse gas reduction targets.
The deal with Magna is similar to the one General Motors reached with U.S. startup Nikola, in which GM would own 11 percent of the company in return for building the Nikola Badger electric pickup. That deal has yet to be fully ratified, however, and looks to be under threat after Nikola was accused of fraud.