Lordstown Motors Corp (NASDAQ:RIDE) saw a surge of 46% Thursday following the announcement that the company had closed a deal to sell its Ohio facility to Taiwanese contract manufacturer Foxconn (TW:2354). The electric vehicle company is suffering from the same supply chain disruptions and rising material costs that sees companies like Tesla (NASDAQ:TSLA) and Chrysler slowing production.
AJ Bell analyst, Danni Hewson, says that the deal should buy Lordstown some breathing room to continue production of the company’s much anticipated electric pickup truck.
"Building electric vehicles is an expensive business at the best of times. Right now the supply crunch is making life incredibly difficult and Lordstown Motors and its shareholders will be feeling a rather heady sense of relief today," added Hewson.
Foxconn will now manufacture Lordstown Motors' Endurance electric pickup truck which will go into production in the third quarter of the year and be in the hands of customers in the fourth quarter.
By Michael Elkins