Foxconn: iPhone maker bets on electric truck firm Lordstown Motors

Foxconn, which makes iPhones for Apple, says it is deepening its investment in a US electric pick-up truck firm, which could challenge Tesla's Cybertruck.

The technology giant is spending up to $170m (£147.8m) on shares in the once-struggling start-up Lordstown Motors.

The major cash injection comes as the company aims to ramp up production of its debut model, the Endurance.

Lordstown recently began building the vehicle at a former General Motors plant in the US state of Ohio.

Under the deal, the world's largest contract manufacturer of electronics bought an almost 20% stake in Lordstown, making it the largest investor in the company.

"Since announcing our first transaction with Foxconn more than a year ago, it has been our objective to develop a broad strategic partnership that leverages the capabilities of both companies," Lordstown's executive chairman Daniel Ninivaggi said.

"Foxconn's latest investment is another step in that direction," he added.

The two companies also said they would jointly develop an electric vehicle together, although they did not give further details of the plan.

The tie-up came after the world's biggest electric carmaker Tesla, which is owned by multi-billionaire Elon Musk, was earlier this month reported by the Reuters news agency to be planning to start mass production of its Cybertruck at the end of 2023.

That would be two years after the original target for the highly-anticipated pick-up truck that Mr Musk unveiled in 2019.

Taiwan-based Foxconn's investment is the latest cash injection into Lordstown as it continues to run at a loss.

Separately on Monday, figures for the quarter to the end of September showed a net loss of $154.4m, wider than the $95.8m loss the company reported for the same time last year.

Shares in Lordstown rose by almost 18% in extended trading in New York after the announcements.

The deal comes as Foxconn's massive iPhone manufacturing plant in Zhengzhou, China has been forced to operate at a significantly reduced capacity.

Apple has warned shoppers to expect delays in receiving its products after a strict Covid-19 lockdown was imposed on the district where the factory is located.

Officials locked down the district for seven days from 2 November as China continues its strict "zero Covid" policy.

"As we have done throughout the Covid-19 pandemic, we are prioritising the health and safety of the workers in our supply chain," Apple said in a statement.

Foxconn said it was working with the Henan provincial government "to stamp out the pandemic and resume production to its full capacity as quickly as possible".