Lordstown Motors

History

2021: Sale of Foxconn Plant

In November 2021, Foxconn acquired Lordstown Motors, which is located in Lordstown in the US state of Ohio. The plant was previously owned by the American General Motors. Foxconn wants to take 10% of the electric vehicle market, producing entire vehicles or components.

The in-need electric vehicle company will receive some relief from the capital injection, and the partnership will give Foxconn a boost to the production of fully electric trucks. Lordstown shares rose more than 13% after trading ended on the news, a strategy in which a trader makes deals based on a news agenda.

Foxconn bought the Lordstown Motors plant $230 million to produce electric vehicles

According to the companies, Foxconn acquired $50 million in ordinary shares directly from Lordstown Motors at a price of about $6.90 per share after signing the agreement in September 2021. In the future, Foxconn will make the first installment in the amount of $100 million until November 18, 2021, subsequent payments of $50 million in February and April 2022. After the final close of the deal, Foxconn will receive 1.7 million to buy Lordstown shares at a price of $10.50 per share. Foxconn also agreed to enter into a contract manufacturing contract to assemble Lordstown Motors' first product, a fully electric pickup truck called Endurance.

Foxconn promised the state of Wisconsin to invest $10 billion in the construction of a 1.8 million square meters. meters LCD plant there and create 13 thousand jobs in the state in exchange for subsidies of $2.85 billion. The state agreed. In the end, Foxconn said it would not be able to deliver on those promises and drastically reduced its plans in the state. The company reduced its planned investments to $672 million from $10 billion and reduced the number of new jobs to 1.4 thousand. As part of this abbreviated plan, Foxconn entered into a deal with Fisker to produce electric vehicles in 2022-2023 in Wisconsin, where the LCD display plant was located.^[1]

Notes