Staff report

The California company behind the autonomous electric tractor built in Lordstown said Tuesday it is searching for a new partner.

Praveen Penmetsa, CEO and founder of Monarch Tractor, in a social media post referenced Foxconn’s $375 million sale of its plant and equipment to SoftBank Group Corp. earlier this month in explaining the move.

“Monarch partnered with Foxconn to build up inventory before the sale, and we now have enough to meet customer demand for the next 12 months, along with ample spare parts,” Penmetsa said.

Based in Livermore, California, Monarch used the former GM auto plant as its base of production. In early April 2023, Monarch and Foxconn presented the first models of the MK-V Series tractors.

The driver-optional tractor has a base price of approximately $89,000.

“Our service and support teams remain fully operational and committed to delivering the care our customers expect,” Penmetsa said. “In the coming weeks, we will be sharing more about our plans to introduce more Monarch-enabled products in the market through new manufacturing partnerships.”

Following the SoftBank Group Corp. announcement, Foxconn said it would remain in Lordstown for the long term and focus on its artificial intelligence data center development.

“The transaction is designed to provide greater flexibility and operational efficiency as the company positions the site for future growth,” a Foxconn spokesman said in a news release. “Proceeds from the sale will be reinvested in the United States, and is part of Foxconn investments that is expected to grow exponentially.”

Prior to that sale, Foxconn and TECO Electric & Machinery Co. Ltd. announced a partnership at the end of July. In a noncash stock trade, the Taiwanese companies agreed to an alliance that leverages their expertise to bolster its standing in the AI sector.

“Foxconn will actively develop a modular architecture for AI data centers, and with TECO aim to extend the value chain from server components and racks to data center construction,” Foxconn Chairman Young Liu said at the time.”

Investors have applauded Foxconn’s AI ambitions after the company released its second-quarter earnings report Thursday. In a published report, said demand for its cloud services and computing products resulted in a 27% net profit last quarter compared to a year before.

It also reported a net profit of $1.48 billion (U.S.) compared to $1.16 billion the year previous. The electronics giant posted $59.7 billion for the quarter, according to reports, with AI making up 41% of its business.

“Overall industry demand continues to outpace supply and we are expanding capacity to meet it,” Kathy Yang, rotating chief executive officer, told the Taipei Times. “That growth momentum is expected to persist this quarter and until next year, with this quarter’s revenue projected to rise 170% year on year.”

Yang said AI server rack shipments are projected to rise 300% for the current quarter.

Part of its strategy is “to expand server production and liquid cooling system capacity in Texas and Wisconsin, and boost cloud and networking capacity at its Ohio plant,” the official told the Taipei Times.