Employees set up door hinges to the frame shell of a prototype Staying power electrical pickup truck on June 21, 2021 at Lordstown Motors’ meeting plant in Ohio.
Michael Wayland / CNBC
Embattled electrical car start-up Lordstown Motors mentioned Wednesday it has closed a $230 million deal to promote its Ohio manufacturing facility to Taiwanese contract producer Hon Hai Generation Staff, higher referred to as Foxconn.
Lordstown’s stocks surged greater than 35% in after-hours buying and selling following the inside track.
The deal to promote the plant, a former Common Motors manufacturing facility, has been noticed as a crucial lifeline for Lordstown, which has run thru just about all the money it raised in a merger with the special-purpose acquisition corporate (SPAC) that took it public in October 2020.
The events had set a Would possibly 18 cut-off date to finish the deal. Had it now not closed ahead of then, Lordstown would had been out of money and, most probably, out of choices to finish construction of its Staying power electrical pickup.
Foxconn plans to make use of the manufacturing facility to construct EVs for purchasers beneath contract, together with the Staying power and a brand new low cost style for California start-up Fisker that is anticipated in 2024.
