Lordstown Motors facing financial problems: SEC filing
Ohio-based Lordstown Motors warns that it may be out of business within a year, Kallanish reports.
The electric truck start-up company says in a US Securities and Exchange Commission filing that it no longer has enough money to start commercial production and warned that there is now “substantial doubt” about its ability to stay in business over the next 12 months. It is seeking additional financing to proceed. It says that some costs have increased, hurting its budget.
If the company cannot raise the needed funds, production may be curtailed and a smaller number of trucks would be produced for testing and certification in an effort to win support from motorists and financial institutions, it says in the 10-Q filing that restates 2020 results filed earlier.
The company is due to start production of its Endurance electric pickup truck in September 2021.
The company says its ability to stay in business “is dependent on its ability to complete the development of its electric vehicles, obtain regulatory approval, begin commercial scale production and launch the sale of such vehicles.”
The company filing says it had $259.7 million in cash as of 31 March, after posting a net loss of $125.2m over the first quarter 2021.
The company declined comment beyond what was in the SEC filing, according to media reports.
The plant is housed in a giant factory in Lordstown, Ohio, that General Motors closed in 2019. Lordstown Motors had pledged to pay workers union wages.
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