Lordstown Motors Shares Continue to Slide
LORDSTOWN, Ohio – Shares of Lordstown Motors Corp. continued their slide on Tuesday, just two weeks after receiving a bump in the wake of the electric-vehicle startup’s milestone agreements with Foxconn.
Lordstown Motors, which trades under the ticker RIDE, saw its share price tumble 12.5% on Tuesday, closing at $1.82.
On May 11, Lordstown Motors announced it had finalized an asset purchase agreement, a contract manufacturing deal and a joint venture partnership with Foxconn.
Under the deal, Foxconn purchased Lordstown Motors plant for $230 million.
According to the Trumbull County Auditor’s office, the plant and nearly 600 acres were sold to Foxconn for $78.5 million. The sale was recorded May 20.
A separate contract manufacturing agreement enables Foxconn to manufacture Lordstown Motors’ first vehicle, the Endurance all-electric pickup. Foxconn has also committed $100 million to a joint venture that allows the Taiwan-based tech company to manufacture future vehicles for Lordstown Motors.
The momentum helped revive RIDE stock from its all-time low of $1.50 per share on May 11 to $2.45 by May 13.
However, company executives told The Business Journal last week that Lordstown Motors still needed to raise sufficient capital to begin commercial production of the Endurance, scheduled for September of this year.
The stock has since plummeted 22% over the past five days and is down 24.1% over the last month. The company’s share value is down 79.6% over the last 52 weeks.
Copyright 2024 The Business Journal, Youngstown, Ohio.
