iPhone maker Foxconn bets on Lordstown motors, a US electric truck firm

Foxconn said that it is deepening its investment in a US electric pick-up truck firm, which could challenge Cybertruck of Tesla.

The technology giant, Foxconn is spending around $170 million on shares in Lordstown Motors, which is currently a loss-making start-up. The company is aiming to ramp up the production of the Endurance, its debut model, thus, the major cash injection comes. Recently, Lordstown motors have begun building the debut vehicle at a former General Motors plant in the US state of Ohio.

Under the deal, Foxconn bought more than 18% stake in Lordstown motors, which made it the largest investor in the company. The two companies, the world's largest contract manufacturer of electronics and Lordstown said that they would also jointly develop an electric vehicle together, but they did not provide further details of the plan.

This tie-up came after the biggest electric carmaker in the world, Tesla, which is owned by multi-billionaire Elon Musk, was planning to start mass production of its Cybertruck at the end of 2023, according to Reuters news agency.