Foxconn pulling its $170M investment in Lordstown Motors has put the company at risk of bankruptcy, causing its stock price to fall.
Lordstown is looking for alternative funding sources and a settlement to its conflict with Foxconn to continue operating.
At market open on Monday in New York, Lordstown shares dropped by 29% to 37 cents per share.
- About six months ago, Foxconn and Lordstown agreed to invest up to $170M and give Foxconn two board seats, providing much-needed capital to Lordstown and giving the Taiwanese multinational technology manufacturer a stronger position in the automotive manufacturing industry.
- In January 2023, due to the high cost of producing the Endurance battery-powered pickup, Lordstown asked Foxconn to suspend production to meet the targeted sale price of $65,000.
- Nasdaq's warning to Lordstown last month that its stock might be delisted if it fell below a minimum $1 per share level for 30 consecutive days sparked Foxconn's action.
The market cap of the EV company is around $100M.
