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      After a Strategic Partnership with Foxconn, Lordstown Motors Corp. (RIDE) stock Rallies Post-Market - Stocks Telegraph

      By Gule Rukhsar

      Published on

      November 11, 2021

      8:20 AM UTC

      After a Strategic Partnership with Foxconn, Lordstown Motors Corp. (RIDE) stock Rallies Post-Market - Stocks Telegraph

      Lordstown Motors Corp. (RIDE) stock reached $6.70 with a big jump of 20.50% after hours, from its last close at $5.56 on November 10, 2021. Lordstown Motors announced its transformative, strategic partnership with Hon Hai Technology Group of Taiwan, generally known as Foxconn, on November 10. This partnership announcement broke the downtrend in RIDE stock which fell down by 2.28% during the market the same day.

      The Lordstown (RIDE)-Foxconn Partnership

      Previously

      The strategic partnership between Lordstown Motors Corp.; a leader in light-duty electric trucks focusing commercial fleet market and Foxconn; the world’s largest electronics manufacturer, was initially announced on September 30, 2021. RIDE stock, which had previously been on a downtrend began to rise after the announcement.

      However, the uptrend didn’t last long after the details of the deal emerged, as investors saw the deal like a desperate attempt for making cash by RIDE. As per the previous details on the deal, RIDE was to sell its $230 million Ohio Plant to Foxconn. It was anticipated that Foxconn will become a contract manufacturer for RIDE’s Endurance pickup truck along with getting rights to Lordstown Motors’ future vehicle programs. According to the details, at a price of $6.89 RIDE would also sell stock worth $50 million to Foxconn. Not only that but, RIDE was also to lease a portion of the Ohio plant back from Foxconn.

      New Developments

      As per the current announcement (November 10) both the parties have entered a Definitive Asset Purchase Agreement on Lordstown Motors’ plant in Ohio. Excluding assets: the hub motor assembly line and battery module and pack lines, RIDE has agreed to the sale of its Ohio plant to Foxconn for $230 million. RIDE will work jointly with Foxconn on the designing and production of its electric vehicle at the plant. To ensure the partnership, Foxconn acquired a $50 million common share at $6.89 apiece.

      Moreover, with the close of the deal, at a price of $10.50 per share, Foxconn will collect 1.7 million RIDE warrants, exercisable for three years. After complete execution, the agreement would help RIDE launch its first vehicle (Endurance pickup) by generating about $300 million.

      RIDE Stock – Q2 Financials

      As per the reports on August 11, Lordstown Motors’ stated a net loss of %108 million for the quarter ended June 30, 2021. The basic and diluted net loss was $0.61 per share for the same quarter against the consensus estimate of a net loss of $0.49 per share. The net loss per share for the same quarter of 2020 was $0.11.

      Lordstown Motors Corp. (RIDE) is set to announce its Q3, 2021 financial results on November 11, 2021, after the market close.

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