(Reuters) – Lordstown Motors Corp announced Wednesday that Taiwan’s Foxconn had purchased stock in the amount of $50 million from an electric car maker in America. This is in fulfillment of an equity investment made back September.
Lordstown reported that Foxconn bought the shares for $6.8983 each. After the bell, the stock rose 10% to $6.11 from $5.56 during regular trading.
Foxconn, which purchased an Ohio assembly plant from Lordstown in September for $230million, announced that it will take over U.S. production of the Endurance pickup truck.
Foxconn, the largest electronics contract manufacturer in the world and best-known for making Apple’s iPhone (NASDAQ:), agreed to pay $100 million as a down payment by November 18.
The company stated that Foxconn’s partnership should allow Lordstown Motors “to significantly reduce its raw materials, component, and other input cost.”
Lordstown stated that the deal should close before April 30.
Lordstown had earlier announced that Edward Hightower, a longtime executive in the automotive industry would be taking over as president.
Lordstown shares lost over 70% this year. This company will release its third quarter results Thursday.
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