Lordstown Motors Corp., the electric vehicle startup, filed for Chapter 11 bankruptcy protection on June 27, 2023. The company also sued its former partner, Foxconn Technology Group, for contract breach.
Lordstown Motors was established in 2016 to produce electric pickup trucks. Their flagship Vehicle, the Lordstown Endurance, faced production delays. In 2021, Lordstown Motors sold its Ohio factory to Foxconn for $230 million, intending to manufacture electric vehicles there.
The relationship between Lordstown Motors and Foxconn deteriorated. In May 2023, Foxconn claimed breach of contract due to Lordstown Motors’ falling stock price and refused to invest the remaining $100 million.
Lordstown Motors’ bankruptcy filing is a setback for the electric vehicle industry, raising concerns about its viability. The company’s lawsuit accuses Foxconn of failing to provide funding and support for the Lordstown Endurance and interfering with finding a new investor.
The bankruptcy and lawsuit will significantly affect Lordstown Motors’ future. It remains uncertain if the company can recover from bankruptcy and continue manufacturing electric vehicles. These struggles highlight the challenges faced by electric vehicle startups.
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