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Lordstown says it’s at risk of bankruptcy if Foxconn walks away from its EV deal
May 1, 2023
Embattled electric vehicle startup Lordstown Motors says it could run out of money if its deal with iPhone manufacturer Foxconn fails to go through. The deal is in jeopardy after Foxconn notified Lordstown that it’s in breach of its investment deal because its stock has fallen under $1 a share.
Lordstown traces its origins to GM’s announcement in 2018 that it would be closing down its Lordstown, Ohio, factory. Then-President Donald Trump assailed GM over the decision, leading to the automaker’s decision to sell the plant to a struggling electric truck startup called Workhorse.
Instead, Workhorse’s founder and former CEO, Steve Burns, started a new company called Lordstown Motors with the plan to build electric pickup trucks, centered on…