Electric And Concept Cars
Foxconn Technology Group, the world’s largest contract manufacturer of electronics, is increasing its investment in Lordstown Motors Corp., a once-troubled EV startup that recently began manufacturing its first all-electric pickup truck at a former GM plant in Ohio, USA.
The two companies said that Foxconn plans to invest $170 million to buy common stock and newly created preferred shares, providing Lordstown Motors with a fresh injection of capital as it works to increase production of its debut EV, the Endurance.
In addition, Lordstown Motors and Foxconn said they would jointly develop their first EV together, and declined to provide further details about the project.
Lordstown Motors said it plans to use the proceeds from the equity sale to fund operations, including building the first 500 pickup trucks and hiring engineers.
The truck maker first made headlines in 2019, when it purchased a then-closed GM factory to build battery-powered trucks. GM at the time was under-pressure from Donald Trump, the then-President of the United States.
Upon the deal’s finalization, Foxconn expects to hold the truck maker’s entire outstanding preferred stock and 18.3% of its common stock on a pro forma basis and will have the right to appoint two members to the board of directors.