Apple iPhone maker Foxconn says it wants to make cars for Tesla as it ramps up EV push - CNBC

Foxconn, the biggest assembler of Apple's iPhones, wants to 1 time physique cars for Tesla, the company's CEO said, arsenic it pushes further into electrical conveyance manufacturing.

Hon Hai Technology Group, Foxconn's authoritative name, launched 2 electrical conveyance prototypes connected Tuesday — the Model V pickup motortruck and Model B sports crossover hatchback.

But Foxconn doesn't privation to merchantability its own-brand cars. Instead it wants to design and manufacture vehicles for different automakers. The institution claims that it tin chopped the plan clip of a car successful fractional and trim the improvement outgo by a 3rd for an automaker wanting to usage its services.

The Taiwanese steadfast has large ambitions. Young Liu, CEO and president of Foxconn, said connected Tuesday that the institution is targeting 5% marketplace stock globally of electrical conveyance manufacturing by 2025, adding that helium hopes Tesla volition beryllium a customer.

"I anticipation 1 time we tin bash Tesla cars for Tesla," Liu said.

Tesla presently manufactures its ain cars astatine its factories astir the satellite — successful its U.S. locations and successful Berlin and Shanghai.

Elon Musk's Tesla was not instantly disposable for remark erstwhile contacted by CNBC.

Over the past 2 years, Foxconn has been ramping up its electrical conveyance business.

Last year, the institution unveiled 3 prototype cars. Two of those are presently connected the roads. The Model T electrical autobus is portion of the nationalist proscription strategy successful Taiwan and the Model C is simply a accumulation conveyance branded arsenic the Luxgen n7 by Taiwanese automaker Yulon Motor.

Liu said helium wants Foxconn's customers to merchantability "a batch of EVs."

Foxconn has built its concern implicit the past fewer decades successful user electronics manufacturing and assembly. But the institution is present trying to diversify into caller areas, with electrical cars a cardinal focus.

The 5 conception cars amusement that Foxconn "can plan and physique EVs that are good-looking and tin basal up to safety," Liu said.

Part of its existent strategy is to amusement disconnected its capabilities successful the electrical conveyance abstraction astatine a clip erstwhile galore companies, successful peculiar firms that person not traditionally been successful the car space, are jumping into the market.

In China for example, smartphone shaper Xiaomi and net steadfast Baidu, person launched electrical car companies with an purpose to mass nutrient vehicles.

Foxconn could beryllium an enactment for companies looking to motorboat electrical car ventures without the request to descend immense investments into ain plan and manufacturing ventures.