Workers install door hinges on the body of a prototype Endurance electric pickup truck at the Lordstown Motors assembly plant on June 21, 2021 in Ohio.
Embattled electric-vehicle startup Lordstown Motors announced Wednesday that it has inked a $230 million deal to sell its Ohio factory to Taiwanese contract manufacturer Hon Hai Technology Group, better known as Foxconn.
Lordstown shares rose more than 35% in after-hours trading following the news.
The deal to sell the plant, a former General Motors factory, was seen as a crucial lifeline for Lordstown, which has used up nearly all the money it raised in a merger with Special-Purpose Acquisition Company (SPAC), which owns it has taken public in October 2020.
The parties had set a deadline of May 18 to finalize the deal. Had it not been shut down before then, Lordstown would have run out of money and probably no options to complete development of its Endurance electric pickup.
Foxconn plans to use the factory to build contract electric vehicles, including the Endurance and a new low-cost model for California startup Fisker, expected in 2024.
https://www.cnbc.com/2022/05/11/lordstown-ride-factory-sale-foxconn-230-million.html Lordstown Motors factory sale to Foxconn completed