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Lordstown Motors manufacturing unit sale to Foxconn closes

Employees set up door hinges to the physique shell of a prototype Endurance electrical pickup truck on June 21, 2021 at Lordstown Motors’ meeting plant in Ohio.

Michael Wayland / CNBC

Embattled electrical automobile start-up Lordstown Motors mentioned Wednesday it has closed a $230 million deal to promote its Ohio manufacturing unit to Taiwanese contract producer Hon Hai Technology Group, higher often called Foxconn.

Lordstown’s shares surged greater than 35% in after-hours buying and selling following the information.

The deal to sell the plant, a former General Motors manufacturing unit, has been seen as a essential lifeline for Lordstown, which has run by way of almost all the money it raised in a merger with the special-purpose acquisition firm (SPAC) that took it public in October 2020.

The events had set a May 18 deadline to finish the deal. Had it not closed earlier than then, Lordstown would have been out of money and, doubtless, out of choices to finish growth of its Endurance electrical pickup.

Foxconn plans to make use of the manufacturing unit to construct EVs for shoppers below contract, together with the Endurance and a brand new low-cost mannequin for California start-up Fisker that is anticipated in 2024.

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