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Lordstown Motors factory sale to Foxconn closes


On June 21st, 2021, workers install the door hinges on the body of an Endurance electric pickup truck at Lordstown Motors’ assembly plant in Ohio.

Michael Wayland/CNBC

Start-up electric vehicle struggling Lordstown MotorsOn Wednesday, the company announced that it closed a $230million deal to transfer its Ohio facility to Taiwanese contract producer. Hon Hai Technology GroupFoxconn is a better-known name for it.

Lordstown shares rose more than 35% after the news.

The deal to sell the plantA former General MotorsLordstown’s factory has been viewed as crucial lifeline. The company has spent almost all of the funds it received in mergers with SPAC (special-purpose acquisition corporation) which made it publicly available in October 2020.

Both parties agreed to abide by the agreement. May 18 deadlineTo close the deal. Lordstown wouldn’t have had the money to close the deal if it hadn’t.

Foxconn will use the factory for EV production for contract clients, such as the Endurance or a low-cost model suitable for California-based start-ups. FiskerIt is anticipated that this will happen by 2024.