Lordstown Motors Files Bankruptcy
U.S. electric truck manufacturer Lordstown Motors filed for bankruptcy today. The news comes after it failed to amicably resolve a dispute with Taiwan’s Foxconn over its promised investment. 👎
In its complaint, it accused the manufacturer of fraudulent conduct and ultimately failing to uphold its agreement to invest up to $170 million in the company. While Foxconn currently owns an 8.4% stake in the company, Lordstown says its partner is not following through on purchasing additional shares. It also alleges Foxconn misled it about working together on vehicle development plans. 🗡️