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Lordstown Motors Closes Deal to Sell Assets to Foxconn, Shares Surge

Reuters2022-05-12

May 11 (Reuters) - Lordstown Motors Corp said it has completed a deal to sell certain assets to Taiwanese contract manufacturer Foxconn , clinching funds essential for the production of its Endurance electric pickup truck.

The Ohio-based company's shares soared more than 24% in extended trading on Wednesday.

The struggling EV maker last year entered the agreement with Foxconn for the sale of its Ohio facility for $230 million, excluding certain assets such as the hub motor assembly and battery pack lines.

On Wednesday, Lordstown said the deal close results in $260 million of proceeds to the company, including the reimbursement of certain operating and expansion costs.

The company said on Monday it needed $150 million in addition to the proceeds from the asset purchase deal to put its Endurance electric pickup truck into production.

Under the agreement, the two companies would create a joint venture to make future vehicles, with Lordstown owning a 45% stake and Foxconn owning the rest.

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Comment4

  • 蒋小鱼
    ·2022-05-12
    Shared surge meh??
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  • SSVC
    ·2022-05-12
    K
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  • Victorhc88
    ·2022-05-12
    Like 
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  • Tjunyuan
    ·2022-05-12
    [Cool] 
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