Lordstown Nears Deal To Sell EV Plant To An Apple Supplier - What You Need To Know

  • Electric truck startup Lordstown Motors Corp RIDE nears an agreement to sell an Ohio car factory acquired from  General Motors Co GM to Foxconn Technology Co Ltd FXCOFBloomberg reports.
  • The plant would mark Apple Inc AAPL partner Foxconn's automotive manufacturing debut in the U.S. as it accelerates a push into electric vehicles in hopes of replicating its smartphone success. 
  • The facility could build over 300,000 of the now-defunct Chevrolet Cruze compact car per year before GM stopped making the vehicle in March 2019. That's when Lordstown stepped in to acquire it.
  • The sale would help the already troubled Lordstown Motors to raise cash and realize the benefits of large-scale manufacturing by building multiple models in the same facility.
  • Lordstown is working on getting its Endurance pickup truck ready for production. However, it would still be a challenge for Lordstown Motors to utilize the entire plant fully.
  • Lordstown is already battling an SEC and DOJ investigation over misstated preorders for Endurance, followed by the ouster of its founder CEO.
  • Price Action: RIDE shares traded higher by 6.93% at $7.87 in the premarket session on the last check Thursday.
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