Lordstown Motors says it may go bankrupt, after investor Foxconn has balked at investing more money in the Ohio-based electrical vehicle maker, Kallanish reports.

“There is substantial doubt regarding our ability to continue as a going concern,” Lordstown Motors says in a stark filing with the US Securities and Exchange Commission on Monday.

Last November, Taiwan-based iPhone maker Foxconn and Lordstown signed a production partnership deal with Foxconn acquiring a 20% stake for up to $170 million. It has invested $52.7 million and is reportedly opposed to investing more, citing a breach of their agreement in a 21 April 2023 letter to the Ohio company.

Foxconn says shares of Lordstown Motors have dropped below $1/share for 30 consecutive trading days. That led to Lordstown Motors getting a delisting notice from the NASDAQ in violation of that agreement. Lordstown says it has until October 2023 to regain full NASDAQ compliance. Foxconn says it wants the issue resolved within 30 days.

The remaining Foxconn payment of $47.3 million is due by 8 May 2023, after it had been approved by the Committee on Foreign Investments in the United States. The company was then to invest an additional $70m in the Ohio manufacturer to jointly develop a new EV, but that plan has not been finalised and appears to be in danger, Lordstown Motors says. The $117.3m investment is likely to be in doubt.

Lordstown Motors claims Foxconn’s actions are “completely unwarranted.” It adds the contract is binding.

Foxconn told the media it is open to discussion and to fulfilling its obligations under the 2022 agreement to get the Endurance EV pickup to market.

The car plant is housed in a giant factory in Lordstown, Ohio, that General Motors closed in 2019.