Lordstown Motors, Foxconn deal approaches finalization deadline
The deadline for Lordstown Motors to finalize a deal with Foxconn is fast approaching.
Lordstown was to finish up a contract manufacturing agreement with Foxconn by this Saturday, April 30th.
If a deal isn't finalized at that time what will be the future of Lordstown Motors?
"If Lordstown Motors is not able to finalize this contract, this is probably going to be the end of it," said auto analyst, John McElroy of Autoline.
The demise of Lordstown Motors is the dire prediction from McElroy if the deal between Foxconn and Lordstown Motors can't be reached.
But more importantly, analysts also say there hasn't been any indication that one won't be reached.
"Both companies have indicated they plan to work together and that will ultimately happen. Whether or not you get an agreement signed by April 30th or a couple days after that, there's no indication that Foxconn and LMC will not be working together," said CNBC analyst, Phil Lebeau.
Foxconn indicated internationally as late as last month that it still plans to build Fisker's PEAR electric crossover at the Lordstown plant.
In fact, they are already taking orders for it with anticipated deliveries by 2024.
McElroy says he thinks it's just coming down to final contracts numbers, meaning money.
"It's been a real tough slog for Lordstown Motors. It had to be rescued a couple of times. I wouldn't be surprised if this came right down to the wire before it gets resolved," added McElroy.
According to a management source inside Foxconn, negotiations between the two companies in Asia and in the U.S. are progressing and while that source isn't actually in those negotiations, they tell 21 News they are not aware of anything that would prevent the asset purchase agreement from happening at this point.
21 News reached out to Lordstown, Foxconn and Fisker for comment but did not get a response back by news time, Monday.