General Motors has bought its stake in struggling electric pickup maker Lordstown Motors, TechCrunch has reported. It reportedly unloaded its 5 p.c funding (value $75 million initially) in the fourth quarter of 2021, as initially disclosed by The Detroit Free Press and confirmed by GM.
Lordstown just lately reported a lack of $81.2 million for the fourth quarter, and mentioned in an earnings name earlier this week that it deliberate to promote solely 3,000 of its Endurance electric vehicles by way of 2023 — a far cry from the 32,000 it predicted when it went public by way of a SPAC deal again in 2020. It goals to build 500 of these this year, however it might want to elevate a further $250 million to take action.
Last year, Lordstown warned that it did not have sufficient money to provide its electric vehicles. Later in 2021, the SEC introduced that it was investigating the agency, and then-CEO Steve Burns was subsequently pushed out after he was discovered to have lied in regards to the variety of Endurance pre-orders.
GM obtained concerned with Lordstown Motors after closing its Lordstown, Ohio plan in 2019, and promoting it to EV producer Workhorse, based by Burns. Burns subsequently began Lordstown Motors with the goal constructing electric pickups on the plant, and obtained $75 million in funding from GM. The thought was to observe the trail of Rivian and build electric pickups for companies, however it’s now in competing in a more durable market in opposition to giants like Ford, which just lately launched the F-150 Lightning pickup.
Lordstown Motors just lately revealed that it did not have sufficient money to final by way of to 2023, so it subsequently agreed to promote the Lordstown plant to Foxconn for $230 million and lease house in it. However, Lordstown mentioned that the deal just isn’t as far alongside as they’d anticipated, a state of affairs that is compounding the company’s issues.
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