Lordstown Motors Files for Bankruptcy Protection

Fledgling EV manufacturer Lordstown Motors, which has been in difficulty for several months, today filed for Chapter 11 bankruptcy protection.

The company announced that it would be putting itself up for sale as part of a dispute over investments promised by Taiwanese company Foxconn. Lordstown has filed suit against Foxconn in relation to that dispute. 

Lordstown shares fell by over 60 percent in pre-market trading following the news.

The company accuses Foxconn of fraud, and of failing to honour an agreement under which the Taiwanese company was to invest $170 million in Lordstown Motors. The agreement called for the companies to partner on development of a range of new electric vehicles.

In a statement sent to CNBC, Foxconn said it hoped to continue discussions in order to reach a solution that would “satisfy all parties” without having to “resort to unfounded legal action.” However, in light of the dispute and what it described as Lordstown's attempt to "mislead the public", it is suspending talks and reserves the right to take its own legal action.

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