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 * Home
 * News
 * Foxconn Finalizes $50 Million Stock Deal With Lordstown Motors


FOXCONN FINALIZES $50 MILLION STOCK DEAL WITH LORDSTOWN MOTORS


FOXCONN HAS BOUGHT STOCK WORTH $50 MILLION FROM THE U.S. ELECTRIC VEHICLE MAKER,
FINALIZING AN EQUITY INVESTMENT ANNOUNCED IN SEPTEMBER.

By  Reuters | Published: 30-Mar-22 07:00 PM IST
4,601  Views

View Photos
Foxconn acquired the shares at $6.8983 apiece, Lordstown said.

Lordstown Motors Corp said on Wednesday that Taiwan's Foxconn has bought stock
worth $50 million from the U.S. electric vehicle maker, finalizing an equity
investment announced in September.

Foxconn acquired the shares at $6.8983 apiece, Lordstown said. The stock, which
had closed at $5.56 in regular trading, rose about 10% to $6.11 after the bell.

In September, Foxconn said it would buy an Ohio plant assembly plant owned by
Lordstown for $230 million and take over production of the U.S. company's
Endurance full-size pickup truck.

Foxconn - the world's largest contract electronics maker best known for
assembling Apple's iPhone - agreed to make a down payment of $100 million by
Nov. 18.

Lordstown's shares have lost more than 70% of their value this year.


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"The partnership with Foxconn should enable Lordstown Motors to significantly
reduce its raw material, component and other input costs," the company said.

The deal is expected to close by April 30, Lordstown said.

Earlier in the day, Lordstown said long-time automotive industry executive
Edward Hightower would take over as president.

Lordstown's shares have lost more than 70% of their value this year. The company
is scheduled to report third-quarter results on Thursday.

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(This story has not been edited by NDTV staff and is auto-generated from a
syndicated feed.)

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