Lordstown Motors, a developer of light-duty, battery-electric pickup trucks for commercial fleets, has filed for bankruptcy under Chapter 11 of the US Bankruptcy Code after failing to resolve its dispute with its production partner, Foxconn Technology Group , regarding a previously agreed investment.

The company also filed a lawsuit against Foxconn, accusing it of fraudulent conduct, which led to the disruption of Lordstown’s business. The complaint alleges that Foxconn falsely portrayed its support for Lordstown’s pickup truck development in order to secure ownership of the company’s manufacturing plant and attract its manufacturing and operational teams.

Foxconn had a previous agreement with Lordstown to invest USD 170 million in the company and had also purchased Lordstown’s manufacturing facility in 2021 in an agreement to pay USD 230 million and buy 10% of shares of common stock. However, as Lordstown’s stock continued to plummet and eventually fell below USD 1, it received a delisting warning from Nasdaq and put Lordstown in breach of its agreement with Foxconn. As a result, Foxconn looked to terminate the investment agreement if Lordstown failed to comply with the necessary terms. In May 2023, Lordstown announced that it might be forced to file for bankruptcy if it loses Foxconn’s funding. 

Lordstown is currently exploring potential buyers for its business. However, the company has not yet received any initial offers.