The sale of the Lordstown Motors factory in Foxconn closes

Workers install door hinges on the chassis of an Endurance electric pickup truck prototype on June 21, 2021 at the Lordstown Motors assembly plant in Ohio.

Michael Wayland / CNBC

Electric vehicle starting on board Lordstown Motors said on Wednesday it had entered into a $ 230 million deal to sell its Ohio factory to a Taiwanese contract manufacturer. Hon Hai technology groupbetter known as Foxconn.

Lordstown’s stock was up more than 35% in after-hour trading after the news.

the deal to sell the plantan ex General Motors factory, was seen as a key lifeline for Lordstown, which ran out of nearly all the money raised in a merger with the Special Purpose Acquisition Company (SPAC) that made it public in October 2020.

The parties had set a Deadline May 18th to complete the deal. Had it not been closed before then, Lordstown would have been cashless and possibly with no options to complete the development of its Endurance electric pickup.

Foxconn plans to use the factory to build electric vehicles for contract customers, including resistance and a new low-cost model for the Californian start-up. fisherman is scheduled for 2024.