General Motors sells its stake in Lordstown Motors

Potential electric vehicle manufacturer Lordstown Motors has taken a big hit on the stock exchange after General Motors reportedly sold its stake in the start-up.

Founded in late 2018, Lordstown Motors took ownership of a former General Motors plant in the town of the same name in Ohio two years ago, planning to rejuvenate it as a hub for electric vehicle production.

According to Carscoops, the start-up was given a boost by GM which bought 7.5 million shares at an initial equity value of around US$75m (AU$102.77), taking a five per cent stake in Lordstown.

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However, after not being able to produce any pre-production examples of its Endurance pick-up last year – let alone the 2200 units first promised – GM has had enough, with the report saying the world's largest automotive manufacturer is selling its sake.

Despite the increased pressure to perform, Lordstown has still set a target of 500 production vehicles to be delivered this year, increasing to 2500 next year – should it be able to get off the ground.

Since Lordstown Motors went public in April 2019 with a share price of US$9.74, it reached its peak in September 2020 at US$29.01 before falling to as little as US$2.55 at the time of writing.