Electric truck maker Lordstown Motors files for bankruptcy, sues FoxconnBy Reuters
June 27, 2023
Electric truck manufacturer Lordstown Motors filed for bankruptcy protection on Tuesday and put itself up for sale after failing to resolve a dispute over a promised investment from Taiwan’s Foxconn.
Shares of Lordstown tumbled 35% in trading on the Nasdaq. The company’s bankruptcy is not the first among the crop of EV startups that went public during the pandemic-era SPAC boom. But Lordstown was a high-profile member of that class because it was challenging the core of the legacy Detroit automakers’ business of high-margin pickup trucks, and because of its location.
“The bankruptcy of Lordstown signals that the days of successful EV startups is in the rear-view mirror,” said Thomas Hayes, chairman at hedge fund Great Hill Capital. “Moving forward it will be Tesla and the traditional incumbents … that will duke it out for market share.”
The automaker, named after the Ohio town where it is based, filed for Chapter 11 protection in a Delaware bankruptcy court. In the complaint, Lordstown accused Foxconn of fraudulent conduct and a series of broken promises in failing to abide by an agreement to invest up to $170 million in the electric-vehicle manufacturer.
* * *
Source:
https://nypost.com/2023/06/27/lordstown-motors-files-for-bankruptcy-sues-foxconn/
