Lordstown Motors has emerged from bankruptcy with a rebranded identity and a focused objective: to pursue its legal battle against Foxconn, the iPhone manufacturer, for allegedly undermining the prospects of an American startup.
In a recent regulatory filing late Thursday, the company disclosed the implementation of a Chapter 11 restructuring plan, approved by the Delaware Bankruptcy Court.
This move positions it as one of the few electric vehicle (EV) startups to endure the bankruptcy process in some capacity, albeit significantly diminished.
Notably, Electric Last Mile Solutions underwent liquidation under Chapter 7 in 2022, while IndiEV’s Chapter 11 process is ongoing in California. A decade ago, both Fisker Automotive and Coda were compelled to sell themselves off during their Chapter 11 restructurings.
Rebranded as Nu Ride Inc., the revitalized Lordstown Motors will also explore potential business partnerships, though specifics regarding merger types were not provided.
The company possesses minimal assets following the sale of its former General Motors factory to Foxconn, with assets related to its electric pickup truck acquired by Lordstown founder Steve Burns.
Under the restructured plan, Nu Ride is now under the leadership of an entirely new board of directors and executive team. It will trade on over-the-counter markets as “NRDE.”
Despite its new identity, the company faces two ongoing federal investigations and additional legal disputes beyond its conflict with Foxconn.
The Securities and Exchange Commission has accused the company of misleading investors about the viability of its discontinued electric pickup truck, resulting in Lordstown setting aside $25.5 million to address some of the ongoing shareholder lawsuits.
Both investigations, one by the Securities and Exchange Commission and another by the U.S. Attorney’s Office for the Southern District of New York, remain active.
Lordstown Motors initiated legal action against Foxconn in June 2023 during its initial bankruptcy filing, alleging that the Taiwanese conglomerate misled them regarding collaborative plans for an electric vehicle lineup. The lawsuit has been largely on hold throughout the Chapter 11 proceedings.
Presently, Foxconn operates the factory formerly owned by Lordstown, having produced a limited number of the startup’s electric pickup trucks before they were recalled.
Foxconn’s endeavor to serve as a contract manufacturer for American EVs has faced challenges, with two of its four potential clients—Lordstown and IndiEV—filing for bankruptcy.
Additionally, Fisker, reportedly contemplating its own bankruptcy filing, has distanced itself from Foxconn, expressing a preference for partnering with an established automaker.
Notably, Foxconn’s Ohio factory currently manufactures tractors for California-based Monarch, reflecting its limited success in the EV manufacturing sector.
