Financial Associated Press, May 13 (Editor Ma Lan) On May 12, electric vehicle startup Lordstown announced that it has completed a deal with contract manufacturer Foxconn for its Ohio factory, which is worth $230 million. Shares in Lordstown surged 35% in after-hours trading on the news. Trapped by a shortage of chips, Lordstown has been burning cash for the past two years, using up almost all the cash it had raised through SPAC mergers. The sale of the Ohio plant, which formerly belonged to General Motors, gave Lordstown a key “life-saving money.” However, this transaction is already planned for Foxconn. Entering electric vehicles In February 2021, Foxconn announced a new partnership with Fisker, an electric vehicle manufacturer. In the same year, it established the “Honghua Advanced” joint venture with Yulon Group to jointly develop the automobile business, and released three electric vehicle models belonging to the Yulon brand at the end of the year. Foxconn first revealed the Lordstown deal in November last year, when Foxconn announced it would pay $230 million.
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