Lordstown Motors factory sale to Foxconn closes

Workers install door hinges to the entire body shell of a prototype Endurance electric powered pickup truck on June 21, 2021 at Lordstown Motors’ assembly plant in Ohio.

Michael Wayland / CNBC

Embattled electric car or truck start-up Lordstown Motors reported Wednesday it has closed a $230 million deal to sell its Ohio factory to Taiwanese deal company Hon Hai Engineering Group, greater acknowledged as Foxconn.

Lordstown’s shares surged far more than 35% in following-hrs buying and selling subsequent the news.

The offer to promote the plant, a former Standard Motors manufacturing unit, has been seen as a essential lifeline for Lordstown, which has run through just about all of the dollars it lifted in a merger with the unique-goal acquisition enterprise (SPAC) that took it public in October 2020.

The events experienced set a Could 18 deadline to finish the deal. Experienced it not shut right before then, Lordstown would have been out of cash and, likely, out of alternatives to finish growth of its Stamina electrical pickup.

Foxconn options to use the manufacturing unit to develop EVs for consumers underneath deal, together with the Endurance and a new reduced-price product for California start out-up Fisker which is expected in 2024.