Shares of Foxconn's EV unit slide 9% in market debut

Foxtron Vehicle Technologies

20/11/2023 04:30

TAIPEI, Nov 20 (Reuters) - Shares of Foxtron Vehicle
Technologies  2258.TW , a unit of iPhone supplier Foxconn
 2317.TW , fell as much as 9% in their market debut on Monday,
hurt concerns over potential headwinds in the highly competitive
electric vehicle market.
    In addition to inflation and high interest rates which have
raised the cost of buying a car, EV makers are also grappling
with supply-chain bottlenecks and pricing pressure from the
likes of Tesla  TSLA.O , which led EV price cuts this year.　
    Tesla CEO Elon Musk last month raised concerns about
expanding factory capacity until interest rates ease, echoing
similar notes of caution from General Motors  GM.N  and Ford.
    "The EV market has been flooded by a red sea of price cuts
by major players such as Tesla," said an analyst at Mega
International Securities, who asked not to be named, citing the
firm's policies on commenting publicly on listed companies.
    "Foxtron has lost money in 2021 and 2022, and we don't think
it will turn around in the next two years.".
    Young Liu, chairman of both Foxtron and Foxconn, said,
however, the company has a clear strategy for growth.
    "Foxtron will build its foundation in Taiwan, leveraging our
own design and service momentum in EV , as well as Foxconn's
proven business models to guide our entry into the North
America, Southeast Asia mainstream markets.＂

 (Reporting By Faith Hung in Taipei; Editing by Anne Marie
Roantree and Shri Navaratnam)
 ((annemarie.roantree@thomsonreuters.com; +852 97387151; Reuters
Messaging: annemarie.roantree.thomsonreuters.com@reuters.net))