Lordstown Motors reportedly in talks to sell Ohio factory to Foxconn
Startup automaker could get much-needed funds from the deal
Check out what's clicking on FoxBusiness.com.
Lordstown Motors stock was up sharply in premarket trading Thursday following a report that the startup electric truck company is in talks to sell its Ohio factory to Foxconn.
Bloomberg, citing unnamed sources familiar with the discussions, said the companies could announce a deal this week that would see both manufacturing products at the facility, which Lordstown purchased from General Motors in 2019 for $20 million with the help of a $40 million loan from GM.
A Lordstown spokeswoman said the company had no comment on the article, and Foxconn has not yet responded to a request for comment from FOX Business.
Lordstown is aiming to launch its all-electric Endurance commercial pickup this year, but has warned investors it requires additional capital to bring it to fruition. The company's reverse merger with special purpose acquisition company DiamondPeak Holdings Corp. last year is also under investigation by the Security and Exchange Commission following a scathing report from short-seller Hindenburg Research alleging that previous management under former CEO Steve Burns misled investors.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Apple iPhone manufacturer Foxconn has made several moves into the automobile space over the past year that include a framework agreement to build electric cars designed by California-based Fisker somewhere in the U.S.
The Lordstown Endurance is a full-size pickup with a range of 250 miles per charge and a starting price of $55,000 that would directly compete against the upcoming Ford F-150 Lightning, which is set to enter production next spring.