Retiring Guy's Digest: GET ME REWRITE!! Lordstown/Foxconn EV debacle on verge of morphing into legal slugfest

Sunday, June 11, 2023

GET ME REWRITE!! Lordstown/Foxconn EV debacle on verge of morphing into legal slugfest

Screenshot from 2020 video by Retiring Guy

Headline: TechCrunch, 6/9/2023

Lordstown said Friday in a regulatory filing that it will sue Foxconn if the company pulls out of an investment agreement and fails to buy nearly 10% of the EV company’s shares. The threat of litigation comes as Lordstown scrambles to raise capital and stay in business.
Lordstown said in its first-quarter earnings report that it would likely cease production of its Endurance pickup truck “in the near future” after repeated production delays, failing to find a strategic partner for the truck and extremely limited ability to raise capital in the current market environment. The EV maker, which became publicly traded following a merger with a special purpose acquisition company, has faced a long string of capital challenges and internal scandals.
In September 2021, it appeared that Lordstown had found a solution when Foxconn agreed to buy its 6.2-million-square-foot factory in Ohio and build its EVs. Foxconn agreed, at the time, to pay $230 million for the facility and buy about 10% of the Lordstown’s common stock for $47.3 million.
The relationship frayed, however, as Lordstown’s share price fell below $1, prompting Nasdaq to issue a delisting warning

Full video