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Foxconn to become biggest shareholder in Lordstown Motors with up to $170 million investment
Lordstown Motors Corp has agreed a deal under which a Foxconn affiliate will invest up to $170 million in the electric vehicle (EV) maker, making the Taiwanese contract manufacturer its biggest shareholder with a near 20% stake. Lordstown will use the proceeds from the share sales to fund development and design activities for a new electric vehicle program in collaboration with Foxconn, scrapping its earlier joint venture deal with the manufacturer, it said in a filing, sending shares up 7% to $2.06 in extended trading on Monday. Foxconn said the deal would deepen Lordstown's ties with Foxconn's EV development platform MIH, or Mobility in Harmony. While demand for electric vehicles has surged globally, supply chain disruptions and rising material costs have made it tough for companies to raise output and meet red-hot demand. Foxconn started manufacturing Lordstown's Endurance pickup trucks in September after buying the U.S. company's Ohio facility. Lordstown expects to limit production of the Endurance through 2023 or longer to minimize losses, until it is able to cut its materials cost. Source: Investing.com #Foxconn
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