Lordstown Motors, an Ohio-based EV startup, has filed for Chapter 11 bankruptcy protection while suing its investment partner, Foxconn Technology, for breach of contract and fraud. Lordstown accuses Foxconn of intentionally destroying the business of the American startup. Foxconn had purchased Lordstown’s Ohio factory and agreed to invest $170 million. However, in April, Foxconn threatened to terminate the deal citing Lordstown’s stock drop. Lordstown’s decision to declare bankruptcy was expected, as the company had already announced potential production halts. The company reported a $171.1 million loss for the first quarter of 2023. Lordstown’s Endurance pickup truck has also faced production and performance issues, with underperformance in range compared to competitors.
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