TechDigits

Tech news
Thursday, May 23, 2024

There's a growing chance your next electric car will be built by the same company as your iPhone

There's a growing chance your next electric car will be built by the same company as your iPhone

There's a solid chance your next electric car — perhaps your first electric car — will be made by the same company as the iPhone in your hand right now. 

There's a solid chance your next electric car — perhaps your first electric car — will be made by the same company as the iPhone in your hand right now. 

And no, we're not talking about Apple's long-rumored autonomous vehicle, which Bloomberg reports has been delayed to 2026. Nor is Google cooking up a Tesla rival of its own. 

Foxconn, the Taiwanese electronics giant that assembles all manner of popular devices including the iPhone, iPad, Kindle, and Nintendo Switch, is diving head-first into the world of electric vehicles. But rather than sell EVs under its own brand, it wants to design and manufacture cars for established automakers and the new crop of EV startups. 

In other words, what Foxconn currently does for Apple, it hopes to do for Tesla. In October, Foxconn's chairman said the company aims to someday make 40-45% of the world's EVs, matching the success it's achieved in electronics.


Foxconn unveiled an electric pickup truck prototype in October.

Foxconn unveiled its first EV prototypes last year and has wasted little time lining up a roster of automotive clients. Earlier this year, the iPhone-maker bought a former General Motors plant in Lordstown, Ohio from struggling automotive startup Lordstown Motors. Lordstown Motors just recently started shipping out Foxconn-made electric pickup trucks to customers. 

Fisker, another EV upstart, has tapped Foxconn to manufacture its second vehicle, the Pear, in Ohio starting in 2024. Foxconn will also build prototypes for yet another startup, Indi EV. And it's inked a partnership with Taiwan's Yulon Motor. 

Volkswagen is considering hiring Foxconn to build its new Scout-branded electric SUV and pickup truck destined for US buyers, Germany's Automobilwoche reported in November. 

Foxconn's foray into EVs is a savvy move, Bill Russo, founder and CEO of Automobility, a Shanghai-based auto-industry consulting firm, told Insider. The company has found great success shouldering the capital-intensive parts of manufacturing electronics, in part because it's able to buy components in such large volumes. And, he said, it's well-positioned to do the same for EV makers, who are eager to reduce the enormous investments required to develop and bring a car to market. 

Plus, vehicles are becoming increasingly internet-connected and computerized, requiring more and more of the electronic components that Foxconn is familiar with. 

"That sounds a lot like the devices that Foxconn builds today. A lot of screens, a lot of chips, a lot of stuff that they know how to buy in significant enough volume" to drive down costs, Russo said. 

Tu Le, managing director of automotive consultancy Sino Auto Insights, says Foxconn's entry will be a boon for the EV startups that don't have the cash to build their own factories. US upstarts Rivian and Lucid have spent huge sums setting up plants of their own, but not all fresh-faced EV companies have that sort of access to capital. 

"There's going to be a lot of asset-light EV startups that are going to come out in the next 24-30 months in the United States, and they're going to need a factory with capacity that can sell them a finished good at a wholesale price," he said. 

And Le could see existing automakers without strong union ties — like Tesla — outsourcing production to Foxconn someday. But first, the company will have to prove it can churn out electric SUVs and pickup trucks to the same the same standard as its iPads and iPhones. 

"It's a ton of opportunity in front of them if they can prove that the first vehicles that roll off the line in Ohio are at the highest quality, highest reliability, highest safety standards that Americans expect," Le said.
Newsletter

Related Articles

TechDigits
0:00
0:00
Close
FTX's Bankman-Fried headed for jail after judge revokes bail
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Musk announces Twitter name and logo change to X.com
The future of sports
TikTok Takes On Spotify And Apple, Launches Own Music Service
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
UK Crypto and Stablecoin Regulations Become Law as Royal Assent is Granted
A Delaware city wants to let businesses vote in its elections
Alef Aeronautics Achieves Historic Milestone with Flight Certification for World's First Flying Car
Google Blocked Access to Canadian News in Response to New Legislation
French Politicians Advocate for Pan-European Regulation on Social Media Influencers
Melinda French Gates Advocates for Increased Female Representation in AI to Prevent Bias
Snapchat+ gains 4 million paying subscribers in its first year
Apple Makes History as the First Public Company Valued at $3 Trillion
Elon Musk Implements Twitter Limits to Tackle Data Scraping, but Faces Criticism for Technical Misunderstanding
EU and UK's Slow Electric Vehicle Adoption Raises Questions About the Transition to Green Mobility
Top Companies Express Concerns Over Europe's Proposed AI Law, Citing Competitiveness and Investment Risks
Meta Unveils Insights on AI Usage in Facebook and Instagram, Amid Growing Calls for Transparency
Crypto Scams Against Seniors Soar by 78% in 2022, Experts Urge Vigilance
The End of an Era: National Geographic Dismisses Last of Its Staff Writers
Shield Your Wallet: The Perils of Wireless Credit Card Theft
Harvard Scientist Who Studies Honesty Accused Of Data Fraud, Put On Leave
Putting an End to the Subscription Snare: The Battle Against Unwitting Commitments
The Legal Perils of AI: Lawyer Faces Sanctions for Relying on Fictional Cases Generated by Chatbot
ChatGPT’s "Grandma Exploit": Ingenious Hack Exposes Loophole in AI, Generates Free Software Codes
The Disney Downturn: A Near Billion-Dollar Box Office Blow for the House of Mouse
A Digital Showdown: Canada Challenges Tech Giants with The Online News Act, Meta Strikes Back
Distress in the Depths: Submersible and Passengers Missing in Titanic Wreckage Expedition
Mark Zuckerberg stealing another idea: Twitter
European Union's AI Regulations Risk Self-Sabotage, Cautions smart and brave Venture Capitalist Joe Lonsdale
Nvidia GPUs are so hard to get that rich venture capitalists are buying them for the startups they invest in
Chinese car exports surge
Reddit Blackout: Thousands of Communities Protest "Ludicrous" Pricing Changes
Nvidia Joins Tech Giants as First Chipmaker to Reach $1 Trillion Valuation
AI ‘extinction’ should be same priority as nuclear war – experts
×