US 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. 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 EV manufacturer.
“The bankruptcy of Lordstown signals that the days of successful EV startups is in the rear-view mirror,” said Thomas Hayes, Chairman of Great Hill Capital.
Foxconn, best known for assembling Apple’s iPhones, previously invested about $52.7 million in Lordstown as part of the agreement, and currently holds an 8.4% stake in the EV maker.
Published in The Express Tribune, June 28th, 2023.
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