Lordstown Motors, the Ohio-based electric vehicle (EV) startup, has filed for Chapter 11 bankruptcy protection. The company is suing its investment partner, Foxconn Technology, for breach of contract and fraud.
Company Suing Investment Partner for Breach of Contract and Fraud
Lordstown Motors is suing Foxconn for allegedly breaching a contract that would have seen the Taiwanese company invest $170 million in the EV startup. Foxconn is also accused of fraud, for allegedly misrepresenting its intentions to support the Endurance pickup.
Endurance Pickup Has EPA-Rated Range of Just 174 Miles
The Endurance pickup is Lordstown Motors’ flagship product. However, the truck has been plagued by problems. The EPA has rated the Endurance’s range at just 174 miles, which is significantly less than its competitors.
Chinese Startup Claims to Have Developed Breakthrough EV Battery Technology
In contrast to Lordstown Motors’ troubles, Chinese start-up Greater Bay Technology is making headlines with its new EV battery, the Phoenix cell. The Phoenix cell can charge at normal speeds even in cold temperatures, heating from -4F to 77F in five minutes. The company says the battery has a range of 1,000 km (621 miles).
Tesla Model 3 Buyers in the US Can Now Get Maximum Federal Tax Credit
Finally, Tesla Model 3 buyers in the US can now get the maximum federal tax credit of $7,500, regardless of which version they buy. The credit was previously limited to $3,750 for the base model.
The Future of Lordstown Motors
The news of Lordstown Motors’ bankruptcy filing is a major setback for the EV industry. The company was once seen as a potential challenger to Tesla, but it has struggled to get its Endurance pickup off the ground. The bankruptcy filing raises questions about the future of the company and the EV market as a whole.