• Send Us A Tip
  • Calling all Tech Writers
  • Advertise
Thursday, June 12, 2025
  • Login
  • Register
TechStory
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
TechStory
No Result
View All Result
Home Business

Lordstown Motors files for bankruptcy, sues Foxconn

by Sumbul Farid
June 27, 2023
in Business, Popular, Trending, World
Reading Time: 3 mins read
0
File photo: Apple's supplier -- Foxconn

File photo: Apple's supplier -- Foxconn

TwitterWhatsappLinkedin

On Tuesday, US electric truck manufacturer Lordstown motors filed for bankruptcy protection and also put its self up for sale after being unable to resolve a conflict over a promised investment from Taiwan’s Foxconn. Shares of the US truck maker plummeted by 60% in premarket trading.
Thomas Hayes, Chairman at hedge fund Great Hill capital, said, “the bankruptcy of Lordstown signals that the days of successful EV start-ups is in the rear view mirror. Moving forward it will be Tesla and the traditional incumbents… That will duke it out for market share.”

You might also like

Silver Airways Ceases Operations Effective Immediately

Google Offers Buyouts to More Employees Amid AI Shift and Antitrust Pressure

Federal Predator Drone Spotted Monitoring Protesters in Los Angeles, Reports Say in Los Angeles Spark Growing Concerns

Lordstown Motors on Brink of Bankruptcy After Foxconn Seeks to Back Off from Investment Deal
Lordstown Motors on Brink of Bankruptcy After Foxconn Seeks to Back Off from Investment Deal

Named after the Ohio town where it is headquartered, the automaker files for chapter 11 protection in Delaware and also took legal action against Foxconn. In the complaint filed in bankruptcy court, the company alleged Foxconn of fraudulent behaviour along with a list of broken promises in failing to fulfil an agreement to invest up to $170 million in the electric vehicle maker. Earlier, the Taiwan-based company invested around $52.7 million in Lordstown as part of its agreement. At present, it holds approximately 8.4% stake in the EV maker. Lords town professes that Foxconn is refusing to purchase additional shares of its stock as promised and it has also misled the company about associating on vehicle development plans.

Formally known as Hon Hai Precision industry, and in famous for assembling iPhones – the Taiwanese company has notified that Lordstown breached the investment agreement when its stock plummeted below one dollar per share. On Tuesday, Foxconn stated that it had maintained “a positive attitude and conduct of constructive negotiations with Lordstown”, however, the US automaker had been stubborn to carry out the investment agreements with its own terms. Foxconn also mentioned that it was suspending negotiations with Lordstown and will now execute its right to legal action.

The double filings by the US automaker has set up an international conflict that could flare up scrutiny of Foxconn’s EV plans and partnerships, not just with Lordstown but with other automakers as well. The lawsuit mention fox conn to be inconsistent and shifting goal posts in its association with Lordstown on the future of vehicles of the company, and also failed to meet funding commitments and denied to engage with the company on initiatives which it promoted.

A start-up launched in 2018 – Lordstown – set in its regulatory filing in the beginning of this month that it looks forward to sue fox conn since it received a letter from the company that led the US EV maker to believe that Foxconn won’t be able to make its promised expected investment. Lordstown also accused Foxconn of engaging in a “pattern of bad faith that cause material and irreparable harm” to the company.

GM (GM) Exits EV Startup Lordstown Motors, Selling Stake at a Loss
Lordstown EV
Source: Techstory

Lordtown’s most important product is the endurance electric pickup truck – built at a former General Motors small car factory in Lordstown exclusively for commercial customers like local governments. The plant was sold to Foxconn in 2022. The company has now filed for bankruptcy and seeks a buyer. Not having an initial offer in hand – called in bankruptcy parlance as a stalking horse bidder, which sets a minimum price other prospective buyers can top in an auction.

The company‘s CEO Edward Hightower said that the insurance business could be attractive to another automaker planning to make a quick entry into the EV market at a time when President Biden’s administrative policies were attempting to stay away from gasoline powered cars. It’s bankruptcy is not a first event among the EV start-ups that began during the pandemic era. Like several others, the company has struggled to live up to the high expectations of its initial investors. Its chief executive and founder in 2021, Stephen Burns, signed off after the automaker mentioned it had overstated pre-orders for its electric trucks.

 

Tags: bankruptcyChinaFoxconnLordstownTaiwan’s Foxconn
Tweet54SendShare15
Previous Post

Tesla on autopilot crashes into stopped truck in Pennsylvania, says police

Next Post

How To Get More Gallowvine in Diablo 4

Sumbul Farid

Recommended For You

Silver Airways Ceases Operations Effective Immediately

by Anochie Esther
June 12, 2025
0
Silver Airlines

Silver Airways, the regional carrier based in Florida, has officially ceased all operations effective June 11, 2025. The announcement, made abruptly on the airline’s social media, comes after...

Read more

Google Offers Buyouts to More Employees Amid AI Shift and Antitrust Pressure

by Anochie Esther
June 12, 2025
0
Google

Google is offering voluntary buyouts to employees in multiple key divisions as it grapples with major internal shifts and external pressures ranging from a potential court-ordered breakup of...

Read more

Federal Predator Drone Spotted Monitoring Protesters in Los Angeles, Reports Say in Los Angeles Spark Growing Concerns

by Harikrishnan A
June 11, 2025
0
Federal Predator Drone Spotted Monitoring Protesters in Los Angeles, Reports Say in Los Angeles Spark Growing Concerns

A heightened federal response to recent protests in Los Angeles has alarmed civil liberties advocates and raised new concerns about government overreach. The situation escalated over the weekend...

Read more
Next Post
How To Get More Gallowvine in Diablo 4

How To Get More Gallowvine in Diablo 4

Please login to join discussion

Techstory

Tech and Business News from around the world. Follow along for latest in the world of Tech, AI, Crypto, EVs, Business Personalities and more.
reach us at [email protected]

Advertise With Us

Reach out at - [email protected]

BROWSE BY TAG

#Crypto #howto 2024 acquisition AI amazon Apple bitcoin Business China cryptocurrency e-commerce electric vehicles Elon Musk Ethereum facebook flipkart funding Gaming Google India Instagram Investment ios iPhone IPO Market Markets Meta Microsoft News NFT samsung Social Media SpaceX startup startups tech technology Tesla TikTok trend trending twitter US

© 2024 Techstory.in

No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to

© 2024 Techstory.in

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?