Lordstown shares dive 23% as investor Foxconn alleges agreement breach

Lordstown Motors shares tumbled on Monday, closing 23% lower after major shareholder Foxconn alleged it breached their USD 170 million investment deal and the electric truck maker warned it might be forced to file for bankruptcy.

Lordstown warned in a US Securities and Exchange Commission filing that “there is substantial doubt regarding our ability to continue as a going concern.” Without a resolution with Foxconn, other funding or new partners, it could be forced to file for bankruptcy or cease operations, it added.

Lordstown said it was in talks with the Taiwanese contract manufacturer to seek a resolution.