Foxconn is betting on electric vehicle manufacturer Lordstown Motors.

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By Creative Media News

Foxconn, which manufactures iPhones for Apple, has reportedly increased its stake in a US electric pick-up truck company, which might compete with Tesla’s Cybertruck.

The IT titan will invest up to $170 million (£147.8 million) in shares of the loss-making startup Lordstown Motors.

The substantial infusion of capital occurs as the company seeks to increase manufacturing of its first model, the Endurance.

In a former General Motors plant in the U.S. state of Ohio, Lordstown has begun manufacturing the automobile.

Foxconn is betting on electric vehicle manufacturer lordstown motors.
Foxconn is betting on electric vehicle manufacturer lordstown motors.

Under the terms of the agreement, the world’s largest electronics contract maker acquired more than 18% of Lordstown, making it the largest investor in the company.

Since announcing our initial transaction with Foxconn more than a year ago, our goal has been to build a comprehensive strategic alliance that harnesses the capabilities of both firms, said Daniel Ninivaggi, executive chairman of Lordstown.

He continued, “Foxconn’s most recent investment is another step in this path.”

The two corporations also stated that they would jointly build an electric vehicle, however, they did not provide any other information.

Reuters reported earlier this month that Elon Musk’s Tesla, the largest electric vehicle manufacturer in the world, was intending to begin mass production of the Cybertruck by the end of 2023.

Electric truck
Foxconn is betting on electric vehicle manufacturer lordstown motors.

That would be two years after the first deadline for the highly anticipated pickup vehicle that Mr. Musk announced in 2019.

The investment by the Taiwanese company Foxconn is the most recent injection of cash into Lordstown, which continues to operate at a deficit.

Separately on Monday, results for the three months to September’s end revealed a net loss of $154.4m, which was greater than the $95.8m loss reported by the company during the same period the previous year.

After the news, prolonged trading in New York saw shares of Lordstown rise by over 18%.

Foxconn and Saudi Arabia’s national wealth fund reached an agreement last week to develop electric vehicles in the kingdom.

The brand name of the joint venture will be Ceer, which sounds like the Arabic word for “drive.”

BMW will license the technology to Ceer, which plans to begin selling electric vehicles in 2025.

The agreement is part of Saudi Arabia’s efforts to wean its economy off of fossil fuels.

Liu Young-way, chairman of Foxconn, stated last month that he believes the business will one-day manufacture automobiles for Tesla as the latter scales up its electric vehicle production.

Speaking at the business’s annual Tech Day, he stated that the company hoped to emulate its success in consumer gadget manufacturing as it moves into the production of electric vehicles for major automakers.

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