TAIPEI, Nov 20 (Reuters): Shares in Foxtron Vehicle Technologies, a unit of Taiwanese contract manufacturer Foxconn, fell in their market debut on Monday, hurt by concerns over headwinds in the highly competitive electric vehicle market.
Foxtron shares did recover some ground from earlier losses of as much as 9 per cent, ending down 2.7 per cent which gave it a market capitalisation of around $2.7 billion.
In addition to inflation and higher interest rates which have raised the cost of buying a car, EV makers are grappling with supply-chain bottlenecks and pricing pressure.
"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 that around in the next two years."
Foxconn's EV unit shares fall
FE Team | Published: November 20, 2023 23:35:20
Foxconn's EV unit shares fall
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