Shares of Foxtron Vehicle Technologies, a unit of Taiwanese contract manufacturer Foxconn, fell on Monday’s market debut amid concerns about unfavourable factors in the highly competitive electric vehicle market.

Foxtron shares did recover slightly from earlier losses of 9% to end up 2.7% lower, giving it a market capitalisation of around $2.7 billion.

In addition to inflation and rising interest rates that increase the cost of buying a car, electric car makers are facing supply chain bottlenecks and pricing pressures.

Foxtron is a joint venture between Foxconn – the world’s largest contract manufacturer of iPhones and other consumer electronics – and local carmaker Yulon. The company currently has only one customer, Luxgen, which is owned by Yulon.

The company raised 7.5 billion tenge ($235 million) in its initial public offering.

Last month, China announced a tax investigation into Foxconn, and the Chinese newspaper that publicised the investigation attributed the move to Beijing’s displeasure with Gou’s decision to run for president.