Foxconn bought a $170 million stake in Lordstown Motors, an American electric truck company, becoming the largest shareholder

Lordstown Motors, a US electric truck startup, said on Monday that it had reached an agreement with Foxconn Investment Co., Ltd. (Foxconn Ventures Pte Ltd), a subsidiary of Foxconn. Under the agreement, Foxconn will invest up to $170 million (1.2 billion yuan) in Lordstown, making it its largest shareholder.

Lordstown electric pickup truck Endurance under the agreement, Foxconn will buy 12.9 million shares of Lordstown on or after November 22, and then buy another 2600 million shares, which will bring Foxconn's share of Lordstown common shares to 19.3 per cent of all preferred shares. That would exceed the 17.2 per cent stake held by Stephen Burn, founder of Lordstown, according to Rufter, the financial information provider.

Lordstown said in a document that the company will use the proceeds from the share sale to fund the development and design of a new electric vehicle project with Foxconn, canceling a previous joint venture agreement with Foxconn. The two sides will jointly develop their first electric car, but declined to comment on the details.

Lordstown shares rose 7 per cent to $2.06 in after-hours trading on Monday on the news.