Posted on 06/27/2023 1:19:57 PM PDT by CFW
U.S. electric truck manufacturer Lordstown Motors (RIDE.O) filed for bankruptcy protection on Tuesday and put itself up for sale after failing to resolve a dispute over a promised investment from Taiwan's Foxconn (2354.TW).
Shares of Lordstown tumbled 35% in trading on the Nasdaq. The company's bankruptcy is not the first among the crop of EV startups that went public during the pandemic-era SPAC boom. But Lordstown was a high-profile member of that class because it was challenging the core of the legacy Detroit automakers' business of high-margin pickup trucks, and because of its location.
"The bankruptcy of Lordstown signals that the days of successful EV startups is in the rear-view mirror," said Thomas Hayes, chairman at hedge fund Great Hill Capital. "Moving forward it will be Tesla and the traditional incumbents ... that will duke it out for market share."
The automaker, named after the Ohio town where it is based, filed for Chapter 11 protection in a Delaware bankruptcy court. In the complaint, Lordstown accused Foxconn of fraudulent conduct and a series of broken promises in failing to abide by an agreement to invest up to $170 million in the electric-vehicle manufacturer.
(Excerpt) Read more at reuters.com ...
Corporations buy stuff like this to up their ESG scores.
Unfortunately, Lordstown has been lying for a long time about a lot of things.
Lordstown had a famous GM strike in the Seventies and the workers made crummy cars on purpose to get back at management.
I don’t know how labor relations and the workforce are there since then, but the management’s been lying about their products.
Volkswagen can get away with that, but upstarts can’t.
P.S. Willie Green was okay. Trains have been around for a long time. EV’s failed a century ago for a reason and they still aren’t ready for a comeback.
I was a project manager for an automation company. Did work for the big 3.
Lordstown was one of the worst places.
Period.
No problem. Now they can all use their money from tax payers that can’t afford or simply don’t want an EV and join the space program.
New the Lordstown Steamer....let’s get behind another innovation - the steam car... 🤓
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