As Tesla, Others Struggle, This Apple Supplier Aims To Be First EV Maker 'Not Short On Material Supplies'

One of Apple Inc's AAPL oldest and largest suppliers — Foxconn Technology Co Ltd HNHPF — said the second half of 2022 is headed "in a better direction" for the company as the Chinese government lifted the COVID-19 lockdown in Shanghai.

What Happened: The world's largest contract electronics maker Foxconn's chairman Liu Young-way in the annual shareholder meeting on Tuesday, according to Reuters, said, "We are quite confident in the stability of our supply chain for the second half of this year."

Referring to a prolonged global chip shortage that has forced many carmakers to slowdown halt production, including Tesla Inc TSLA and Nio Inc NIO — Liu said the company is aiming to become the first electric vehicle (EV) maker that is "not short on material supplies."

"A car that costs tens of thousands of dollars cannot be shipped because of a tiny chip worth fifty cents. This has been a pain for our customers," he added.

The company aims to capture around 5% of the global electric vehicle market by the end of 2025.

Foxconn reiterated that the strict COVID-19 restrictions in China had a limited impact on its production; however, the demand for its products has suffered.

Price Action: According to data from Benzinga Pro, OTC shares of Hon Hai Precision Industry Co., Ltd., widely known as Foxconn Technology Co Ltd, closed 1.49% higher at $7.47 on Monday.