Foxconn plans to invest $170 million!!!
Lordstown Motors Corp has agreed a deal under which Foxconn will invest up to $170 million in the associate electric vehicle (EV) maker, allowing the Taiwanese contract manufacturer to hold an approximately 20% stake. With this it will become its largest shareholder.
According to Refinitiv, Foxconn Ventures Pte Ltd will purchase 12.9 million shares and an additional 26 million shares on or after november 22 that will increase Foxconn's holdings to 18.3% of Lordstown common stock and all of its preferred stock, Which would surpass founder stephen Byrne's 17.2% stake.
Lordstown will use the proceeds from the share sale to fund development and design activities for a new electric vehicle program in collaboration with Foxconn, ending its earlier joint venture deal with the manufacturer, it said in a filing, adding the shares to 7 % has been expanded to $2.06. Foxconn said the deal will deepen Lordstown's relationship with Foxconn's EV development platform MIH or Mobility in Harmony. Foxconn said, "In the future, there will also be opportunities to share LMC's technical resources with other customers, further expand the MIH EV ecosystem, and allow customers to choose better solutions and become more competitive."
Foxconn began manufacturing Endurance pickup trucks in Lordstown in september after purchasing the American company's Ohio facility. Lordstown expects to limit Endurance's production to minimize losses until 2023 or longer, until it is able to cut its material costs. Lordstown said on monday that the cost of materials to build its Endurance Electric Pickup Truck was higher than the price at which it intends to sell, until material costs are reduced.
