In a world where electric vehicles (EV) are steadily gaining traction, Lordstown Motors, an Ohio-based EV startup, has experienced a roller coaster of events. After the shocking news of the company’s bankruptcy back in June 2023, Steve Burns, the founder and former CEO of Lordstown Motors, has now taken a bold step. He has repurchased the company’s assets.
GM Authority previously reported on Lordstown Motors’ bankruptcy following disagreements with the Taiwanese electronics manufacturer, Foxconn. As highlighted, Burns spent a whopping $10 million to reclaim the assets post-bankruptcy.
However, it’s not his first foray into financial maneuvers concerning the company. Burns previously held about “25 percent of Lordstown Motors shares” and raked in more than $60 million after selling a significant portion of them, including a notable chunk just before the company went bankrupt.
Skeptics Raise Doubts
However, not everyone is optimistic about this move. Critics question the company’s future.
As one analyst bluntly stated, “It’s just as doomed as ever. There’s only soft tooling there. Maybe they could build a couple hundred more trucks, but that’s it. And nobody’s going to buy them.”
What remains uncertain is the exact assets Burns has obtained, especially since the primary Lordstown Motors plant is under Taiwan’s Foxconn’s ownership.
A Glimpse into the Past
For those unfamiliar with Lordstown Motors’ journey, it has been anything but smooth. Originating from the purchase of the GM Lordstown plant – previously a production hub for the Chevy Cruze – the electric vehicle startup got off to a promising start. General Motors even received approximately eight million shares of Lordstown as part of the plant’s sale.
However, the tides turned in early 2021 when General Motors divested from the startup. Following GM’s exit, Burns also stepped down. The following year witnessed a significant change, with Foxconn purchasing the Lordstown plant for $230 million and investing an additional $50 million in the company.
But by June, disputes emerged, culminating in Lordstown Motors accusing Foxconn of fraudulent business practices. Only time will reveal the outcome of Burns’ latest move, but one thing is sure: Lordstown Motors’ saga is far from over.