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Investing.com – Lordstown stock (NASDAQ:RIDE) climbed by 6% in Thursday’s premarket trading on a Bloomberg report that said Foxconn (TW:2354) may buy the company’s Ohio plant to fulfill its own ambitions of making an electric vehicle.
According to the report, the announcement of the deal could come as soon as this week. The plant once belonged to General Motors (NYSE:GM) and was acquired by Lordstown in 2019.
The sale will bring in much-needed funds for Lordstown, which has warned several times that its running out of cash and may go out of business next year. The company’s electric pick-up truck, Endurance, is behind schedule and commercial deliveries are now expected to happen in next year’s second quarter, according to the company’s August 11 release.
The U.S. Securities and Exchange Commission and the Justice Department are probing the company for inaccurate statements made by the company’s previous management about pre-orders for its Endurance trucks.
The company had eased out its then CEO Steve Burns and CFO Julio Rodriguez with immediate effect in June as part of the cleanup. Daniel Ninivaggi, former CEO of Icahn Enterprises, took over at the helm of the beleaguered company last month.
The sale will help both Foxconn and Lordstown better use the factory’s capacity, given that multiple models can be made there in future.
Foxconn (TW:2354), Apple’s (NASDAQ:AAPL) largest assembler of iPhones, is hoping to replicate its smartphone success by building clients’ electric vehicles from the chassis up, Bloomberg said.
