Chapter 11 at Lordstown; Tesla charging standard more entrenched: This week in EVs
Investing.com — Here is your weekly Pro Recap of the past week's biggest headlines in the electric vehicle space: RIDE files Chapter 11; Tesla sees continued expansion for its charging standard; and TSP puts up for-sale signs.
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Following the announcement of its bankruptcy protection filing in a Delaware court, Lordstown (NASDAQ:RIDE) shares witnessed a sudden 50% plunge on Tuesday morning.
As part of its efforts to restructure under Chapter 11, Lordstown also unveiled a lawsuit against Foxconn parent Hon Hai Technology Group, accusing Foxconn of fraudulent behavior and of repeatedly reneging on its commitment to invest up to $170 million in the EV maker.
The lawsuit alleges that Foxconn never had genuine intentions to fulfill its obligations, particularly in relation to the development platform for new vehicles. According to the filed complaint, Foxconn purposefully and in bad faith exploited the various contractual agreements with Lordstown to undermine and dismantle the company's operations, while leveraging the resources gained from the partnership to advance its own business interests.
Shortly after, Lordstown — named after the Ohio town it operates in — disclosed that it had received a delisting notice from Nasdaq. The notice, received on June 28, indicated the company's failure to comply with listing rules, resulting in the suspension of trading in its class A common stock on July 7, as stated in the filing.
Shares of RIDE fell 27% this week and are down nearly 88% so far this year.
Tesla (NASDAQ:TSLA) received more good news this past week as EV makers and charging companies have continued to adopt the company’s North American
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