Lordstown ($RIDE) is running low on cash and is in talks to sell its Ohio factory to Taiwan’s Foxconn Technology Group. The companies might announce the pact this week, the plan hasn’t been made public yet, and the news comes from sources that do not provide details of the transactions.
This agreement will bring the necessary funds to the automaker and help it realise the benefits of large-scale manufacturing faster with Foxconn.
When asked about this deal, a Lordstown spokesperson refused to comment.
As a result of the buzz created, Lordstown’s shares rose around 8.4% to $7.98 pre-trading on Thursday. Over the last year, the company has lost almost three-quarters of its market value. The company has also been under investigation by the US SEC and Justice Department.