Workers install door hinges on the body of an Endurance electric pickup prototype on June 21, 2021 at the Lordstown Motors Assembly Plant in Ohio.
Michael Wayland / CNBC
Start-up of electric vehicles in conflict Lordstown Engines said Wednesday it closed a $230 million deal to sell its Ohio factory to a Taiwanese contract manufacturer. Hon Hai Technology Groupbetter known as Foxconn.
Lordstown shares rose more than 35% in after-hours trading on the news.
The agreement to sell the planta former general motors factory, has been seen as a critical lifeline for Lordstown, which has spent nearly all the cash it raised in a merger with the special purpose acquisition company (SPAC) that went public in October 2020.
The parties had set a May 18 deadline to complete the deal. If it hadn’t closed before then, Lordstown would have been out of cash and likely out of options to complete the development of its Endurance electric pickup.
Foxconn plans to use the factory to build electric vehicles for customers under contract, including the Endurance and a new low-cost model for the California startup. fisker that is expected in 2024.