Foxconn's electric car unit falls in market debut

STORY: Foxconn's electric vehicle technology unit - dubbed Foxtron - made a stuttering start on its market debut on Monday (November 20).

Unfortunately for the Taiwan-based company, investors showed their concerns about the EV market.

Foxtron shares were off as much as 9% at one point, though they rallied to end 2.7% down.

One analyst warned the EV market has been flooded by price cuts from major players like Tesla.

Electric car makers are also dealing with a wide range of headwinds.

Inflation and higher interest rates have made such vehicles more expensive to buy.

While supply-chain bottlenecks and pricing pressures persist.

Foxtron is a joint venture between Foxconn and local car maker Yulon, whose Luxgen brand is so far its only client.

But Foxtron chair Young Liu said the company has a clear strategy for growth.

And he said the firm has ambitions to move into North American and Southeast Asian mainstream markets.

The company raised $235 million in its initial public offering.