Foxconn plans to invest in Chinese rival Tesla

Foxconn plans to invest in Chinese rival Tesla

Apple’s largest supplier Hon Hai Precision Industry (a Foxconn brand) is in talks to invest in Tesla’s Chinese rival, Byton, an electric vehicle startup.

The Bloomberg resource, who reported this, claims with reference to informed sources that Foxconn plans to invest about $ 200 million in Byton. The startup will direct the funds received to prepare for the mass production of the M-Byte electric crossover, scheduled for 2022.

For Byton, struggling financially, the deal will be a blessing. In turn, the Taiwanese manufacturer is looking to diversify its business, as half of its revenue now comes from the production of iPhones and other devices for Apple. The deal with electric car maker Byton could mean Foxconn has decided to focus on the automotive industry as part of its diversification. Moreover, according to a Bloomberg source, Foxconn is also negotiating with other Chinese electric vehicle manufacturers about possible cooperation.

In early 2020, Foxconn announced plans to form a joint venture with Fiat Chrysler Automobiles to develop and manufacture electric vehicles in China, although it will not be involved in assembling them. In October, the Taiwanese company unveiled the MIH open platform to help EV makers accelerate time to market for new models. The Foxconn group also supplies parts to other major automakers, including Tesla.

“Electric car business has good prospects in the first half of 2021“Foxconn Chairman Liu Young-way said at a company event in Taipei last month.

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