Lordstown Motors (NASDAQ:RIDE), with the help of a fresh investment of up to $170 million from Foxconn Technology Group, is set to develop a new electric vehicle (EV). Down more than 50% year-to-date, RIDE stock surged nearly 13% in Tuesday’s pre-market trading.
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The investment entitles contract manufacturer Foxconn to hold all of Lordstown’s outstanding preferred stock and about 18.3% of its common stock. Also, Foxconn has the right to appoint two members to Lordstown’s board of directors. Notably, the investment will come in tranches on the basis of the achievement of certain milestones.
Lordstown CEO Edward Hightower said, “The combination of LMC’s experienced vehicle development team, Foxconn’s growing EV ecosystem, the MIH platform, and our asset-light business model will allow us to bring great EVs to market faster and more efficiently.”
What is Lordstown’s Stock Price Target?
The average RIDE stock price target of $1.50 implies downside potential of 18.92%. The stock has a Moderate Sell consensus rating based on one Hold and one Sell.
