![]() We’ll keep you updated when we hear more on the Lordstown-Foxconn situation. Lordstown’s stock is down 4% today following the news. Lordstown (RIDE) stock price chart after the 1:15 reverse split (Source: TradingView)Īlthough the move has satisfied the Nasdaq’s $1.00 minimum listing requirements, Lordstown said Foxconn has still not acknowledged its obligations and, therefore, threatened to take legal action. ![]() Lordstown implemented a 1:15 reverse stock split designed to boost share prices as it hopes to avoid filing for bankruptcy. Lordstown received a stock delisting notice from the Nasdaq in April, and as a result, the Taiwanese manufacturing giant claimed the EV startup was in violation of their equity purchase agreement.Īs such, Foxconn has failed to invest the additional $47.3 million that was part of the initial deal. Lordstown Foxconn plant (Source: Lordstown)Īfter injecting several rounds of funds into the EV startup, Foxconn is looking to back out of the deal. On the verge of bankruptcy, Lordstown found a savior after selling the Lordstown plant to Foxconn, which included an additional +$100 million investment in the company. Shortly after the accusations, Burns and CFO Julio Rodriquez abruptly resigned in June 2021, leaving the fate of the Endurance electric truck up in the air.Īfter the executives stepped away, new leadership took over. Lordstown Endurance electric truck (Source: Lordstown) ![]() Meanwhile, executives and directors unloaded roughly $28 billion in stock despite being publicly listed for less than two years. Hindenburg noted Burns, CEO at the time, boasted of having pre-sold 100,000 vehicles, which would generate over $5 billion in revenue. EV startup Lordstown Motors said on April 18 it resumed production and deliveries of its Endurance electric pickup truck this month after a pause in. The hype was short-lived after short-seller Hindenburg Research released a report accusing the EV startup of inflating Endurance electric truck pre-orders. After going public in 2020 via a SPAC deal, Lordstown saw its valuation soar as interest and demand in EVs climbed to new heights. He sold 581,000 shares on May 23, 2023, another 200,000 on May 24, and the last 591,752 on June 16.īurns established Lordstown in 2019 following a deal to take over the former General Motors Lordstown plant. The 52,500 truck goes into production next year in Lordstown, Ohio, at a former General Motors factory, and unlike forthcoming BEV pickups from Tesla and Rivian, this one is aimed squarely at. The filing shows Burns sold his stake in Lordstown on three different occasions. Lordstown founder sells entire stake in the EV startupĪccording to Lordstown’s latest SEC filing, founder and former CEO Stephen Burns now owns zero shares in the company.
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