Electric truck-manufacturer Lordstown Motors (NASDAQ: RIDE) is gaining nicely today, with a 10% spike after rumours that the company has been talking to Taiwan’s Foxconn Technology group regarding the apparent sale of their prized Ohio factory.
Whilst plans aren’t finalised or publically announced, strong rumours were enough to bolster RIDE's price up to $7.99, with the stock losing some of its momentum whilst writing yet remaining strong.
The sale comes as a breath of fresh air for Lordstown, which was running low on available funding. Further details of the transaction are yet to be made public including the total sale amount – further news should reach the public in the coming days.
The deal will not only provide a much needed cash injection for the otherwise struggling manufacturers, but will also create a large-scale space where Foxconn and Lordstown will be able to design and build multiple models under the same roof.
In a huge move for Foxconn, the factory would be the first footstep into electric vehicle manufacturing in the US.
With gains of up to 21% in early trading, RIDE has lost some significant momentum but is currently still pushing towards the $8 mark.
After a difficult year for Lordstown and its bearish trend, times might be changing for the electric-truck visionary. The company is expected to go commercial with its vehicles in 2022.
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Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.