Is Foxconn a Reliable Partner for Struggling EV Company Lordstown Motors?
Now that struggling electric vehicle manufacturer Lordstown Motors (NASDAQ: RIDE) has sold most of its Lordstown factory in Ohio to Taiwanese electronics manufacturer Foxconn (OTC: FXCNF), the question arises whether Foxconn is a viable partner for the EV maker's strategy.
Foxconn, after all, previously planned a $10 billion facility in Mount Pleasant, Wisconsin, in 2018. Three years later, the factory hasn't been built and the site remains mostly idle. Investors may be wondering if the same thing will happen with the Lordstown Complex plant, but there are at least some indications the outcome will be more positive here.
After nearly running out of money while attempting to put its Endurance electric pickup truck into production, Lordstown Motors recently started preparing to sell most of its huge factory to Foxconn for $230 million. Lordstown originally acquired the assembly plant from General Motors in 2019, using a $40 million loan supplied by GM itself.
Source Fool.com
