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Lordstown Motors Warns of Bankruptcy as Foxconn Deal Unravels
- Foxconn’s $170 million pledge in jeopardy after Nasdaq notice
- Shares of EV maker Lordstown tumble after market opens Monday
Lordstown Motors Corp. headquarters in Lordstown, Ohio.
Photographer: Dustin Franz/BloombergLordstown Motors Corp. may be forced to cease operations and file for bankruptcy after manufacturing giant Foxconn told the electric-vehicle company that it’s prepared to pull out of a production partnership.
The deal with Foxconn Technology Group could unravel after the Taiwanese company threatened to withhold funding, something that could force Lordstown into insolvency, the company warned in a securities filing on Monday. Lordstown said it was also seeking alternative financing.