Struggling startup Lordstown Motors gets $400M investment

In this June 22, 2021, file photo, employees stand near Endurance truck beds during a media tour of the Lordstown Motors complex in Lordstown, Ohio.

AP Photo/David Dermer, File

LORDSTOWN, Ohio (AP) — Startup commercial electric vehicle maker Lordstown Motors says it has received a $400 million investment from a private equity firm.

The struggling Ohio company says in a filing Monday with the Securities and Exchange Commission that New Jersey-based hedge fund YA II PN Ltd has agreed to buy $400 million of its stock.

Shares of the company went up 5 percent in trading Monday after a steady fall the past month.

Lordstown’s operations have been under increasing scrutiny in recent months after the company said it had no firm orders for its vehicles.

The company’s CEO and chief financial officer then resigned.

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