General Motors already sold their massive stocks on Lordstown Motors, where they own 7.5 million shares of the company, amounting to as much as $75 million equity value. The move by the company remains unknown, but the sale got a confirmation from a GM executive, and representatives from Lordstown Motors remain silent about the matter.
General Motors Sell Its Stocks worth $75 M Equity on Lordstown Motors
A report by the Detroit Free Press first sighted the move made by GM, and it already sold the stocks it owns on Lordstown Motors by as much as 7.5 million shares. These shares are worth initial equity of $75 million, a massive stake on the company invested by General Motors way back when it first started in October 2020.
The SPAC deal in the previous years highlighted the stakes of GM to Lordstown, especially as the sale of General Motors' Lordstown factory to Workhorse bore Lordstown Motors. According to CNBC, the deal faced several difficulties and problems as it did not fare well during former President Donald Trump's term. Instead of its sale, it became a sellout to then-Workhorse and a company coming out from the other end due to this venture.
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GM and Lordstown: No Longer In Good Terms?
GM gave $25 million from the sale to Lordstown, and it is the only monetary investment that the Detroit manufacturer gave to Lordstown, which gave them less than a five percent stake in the new company. The rest of the $50 million from the supposed $75 million equity is for other stakes that include factory access and production assistance.
GM and Lordstown are in a grey area where it does not necessarily say that they are on good or bad terms, with both parties declining to comment on the recent sale.
GM and Lordstown, Ford and Rivian
Like GM and Lordstown, Ford is a massive stake owner in Rivian, a famous startup company that focuses on fully electric vehicles with their ventures. Since they became popular, there have been different stakeholders and investors in these electric vehicle startups, and companies have made sure that their funding and production will continue.
Of course, massive companies like GM and Ford have the means and ways to make these happen, which helped these startups achieve enormous fame and development. Lordstown Motors' Endurance electric pickup truck gained popularity as it was among the first to release its EV for the public to see.
It was also when the demand for electric pickups was on the rise, as Tesla Cybertruck's fame rose sky-high.
GM's stake in Lordstown is massive, and it will also result in a significant change in the operations of the latter startup as it will have new investors and partners. The pullout of something as massive as GM will affect the business, especially as the Detroit-based car manufacturer is a renowned name in the industry.
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This article is owned by Tech Times
Written by Isaiah Richard
