Monday, June 24, 2024
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Home » Lordstown trades up following announced $170M Foxconn investment

Lordstown trades up following announced $170M Foxconn investment

by Kayden Atkinson
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Foxconn (TW:2354), the world’s biggest contract electronics maker, announced late Monday that the company has chosen to invest up to $170 million in U.S. electric truck maker Lordstown Motors (NASDAQ:RIDE). The investment represents a nearly 20% stake in the electric vehicle company and earns Foxconn two board seats at the company.

The transaction will require a review by the Committee on Foreign Investment in the United States.

The Taiwanese giant has ramped up investment in EVs and semiconductors in recent years, announcing deals with U.S. startup Fisker Inc (NYSE:FSR) and Indian conglomerate Vedanta Ltd (NS:VDAN). It said on Tuesday the latest deal would deepen Lordstown’s ties with Foxconn’s EV development platform MIH, or Mobility in Harmony.

“In the future, there will also be opportunities to share LMC’s (Lordstown’s) technical resources with other customers, further expanding the MIH EV ecosystem, and enabling customers to choose better solutions and be more competitive,” Foxconn said.

Lordstown Chief Executive Officer Edward Hightower, speaking via video at an MIH event in Taipei, said the truck maker and Foxconn were eyeing production for other original equipment manufacturers, or OEMs, as well.

Separately, Lordstown announced third-quarter results, revealing an operating loss of $154.8 million. It ended the period with cash and short-term investments of $204 million.

Shares of RIDE are up 12.97% in pre-market trading on Tuesday.

Source: Investing

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