Lordstown Motors emerges from bankruptcy with a new identity to compete against Foxconn

Lordstown Motors has emerged from bankruptcy with a new identity, Nu Ride Inc., and a renewed focus on continuing its legal battle against Foxconn, the iPhone-maker, for allegedly damaging the business of an American startup.

The company confirmed its Chapter 11 restructuring plan, approved by the Delaware Bankruptcy court, making it one of the few electric vehicle (EV) startups to survive bankruptcy, albeit in a diminished state. Nu Ride also hinted at exploring potential business combinations, although specific merger plans were not disclosed. Notably, the company has sold its former General Motors factory to Foxconn, while assets related to its electric pickup truck were acquired by Lordstown’s founder, Steve Burns.

With a revamped leadership comprising a new board of directors and executives, Nu Ride will now trade on the over-the-counter markets under the symbol “NRDE.”

Despite its restructuring, Nu Ride faces ongoing federal investigations and legal challenges, including an SEC probe into alleged investor misleading and ongoing shareholder lawsuits. Additionally, the company is still embroiled in a lawsuit against Foxconn, initiated in June 2023, accusing the Taiwanese conglomerate of deceptive collaboration plans related to electric vehicles.

While Foxconn now operates the factory formerly owned by Lordstown, its foray into contract manufacturing for American EVs has encountered setbacks, with two of its potential customers, Lordstown and IndiEV, filing for bankruptcy.

Amidst these challenges, Foxconn’s sole production activity in its Ohio factory currently involves manufacturing tractors for Monarch, a California-based company.