Press "Enter" to skip to content

Lordstown Motors warns it doesn’t have enough cash to produce electric trucks

Lordstown Motors has been among the many startups (Rivian, Canoo) promising electric pickups that may compete with the present titans of the truck world, however an replace as we speak reveals the company’s future is unsure. The New York Times studies on a submitting with the SEC that reveals the company’s capacity to transfer ahead as a going concern is in danger, just because it doesn’t at the moment have enough cash to begin manufacturing the Endurance electric truck.

Lordstown Motors:

The Company had cash and cash equivalents of roughly $587.0 million and an collected deficit of $259.7 million at March 31, 2021 and a web lack of $125.2 million for the quarter ended March 31, 2021. Since inception, the Company has been creating its flagship automobile, the Endurance, an electric full-size pickup truck. The Company’s capacity to proceed as a going concern relies on its capacity to full the event of its electric automobiles, acquire regulatory approval, start industrial scale manufacturing and launch the sale of such automobiles. The Company believes that its present degree of cash and cash equivalents should not ample to fund industrial scale manufacturing and the launch of sale of such automobiles. These situations elevate substantial doubt relating to our capacity to proceed as a going concern for a interval of a minimum of one year from the date of issuance of those unaudited condensed consolidated monetary statements.

To alleviate these situations, administration is at the moment evaluating varied funding options and will search to elevate extra funds by the issuance of fairness, mezzanine or debt securities, by preparations with strategic companions or by acquiring credit score from authorities or monetary establishments. As we search extra sources of financing, there will be no assurance that such financing could be obtainable to us on favorable phrases or in any respect. Our capacity to acquire extra financing within the debt and fairness capital markets is topic to a number of elements, together with market and financial situations, our efficiency and investor sentiment with respect to us and our business. 

The company went public in October by way of the maneuver often called a SPAC, particular acquisitions company, and not too long ago warned traders it was liable to being delisted for lacking a submitting deadline. The plan has been to promote its truck to companies, however with electric pickups arriving from Ford and others, it’s solely going to get tougher to compete, assuming the Endurance comes to market within the first place.

All merchandise advisable by Engadget are chosen by our editorial crew, impartial of our dad or mum company. Some of our tales embody affiliate hyperlinks. If you purchase one thing by one in all these hyperlinks, we could earn an affiliate fee.