Foxconn wants to be to Tesla what it is to Apple

Foxconn, the Taiwanese manufacturing giant, says it wants to build electric cars for Tesla the way it builds iPhones for Apple.

Today is the annual Technology Day Foxconn has introduced a new electric pickup truck and a new electric crossover.

The manufacturing company has now unveiled a full line of electric vehicles that it can produce at several factories it has acquired in Asia and the US over the past few years.

Although Foxconn has introduced several electric cars so far, it appears that it still has no plans to be a consumer-oriented brand, and plans to partner with other automakers to sell its cars.

As with some of Apple’s products, Foxconn wants to take over the entire process of making electric cars — or licensing the electric cars — it has already introduced.

During today’s event, Chairman Liu Yang-wei said that Foxconn aims to produce 5% of the electric car market by 2025 and that the company even hopes to make cars for Tesla:

Based on our past records in the PC and mobile markets … we have about 40-45% of the total market share. So, in terms of ambition, we hope that we can make the same gains as the ICT (Information and Communication Technology) industry, but we will start small, which is about 5% in 2025. I hope one day we can make Tesla Cars for Tesla.

The company believes that its supply chain sustainability would be really attractive to automakers.

Liu Yang-wei commented:

Supply chain sustainability has always been Foxconn’s DNA. Our global footprint in 24 countries gives us a huge advantage to meet the demands of the electric vehicle industry.

Foxconn has done relatively well for Apple amid the global supply chain crisis, which has hit the electronics industry particularly hard.

Will Tesla work with Foxconn?

What Foxconn is offering is not entirely new to the electric vehicle or automotive industry.

For example, Magna has been known for building and building cars for other automakers, has made electric cars for Jaguar, and is set to build cars for Fisker and Lordstown Motors.

But would Tesla want Foxconn to build its cars?

I guess not. CEO Elon Musk has made it clear that he aims to make Tesla’s main competitive advantage in the future to be manufacturing. Therefore, if this is the goal, it will not make sense for the company to contract the production with another company.

I’d be shocked if we ever see Tesla partner with Foxconn, but I like their ambition to produce 5% of the EV market by 2025 already.

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