It is now been a yr since Lordstown Motors unveiled its Endurance battery-electric pickup truck, however the firm is unlikely to begin manufacturing with out recent funding.
The electrical-vehicle startup, which solely final October went public via a SPAC deal, mentioned on Tuesday in a submitting with the Securities and Trade Fee that it would not have the money to begin manufacturing of the Endurance and has warned that it won’t have the ability to keep in enterprise over the subsequent 12 months.
In keeping with the submitting, Lordstown had $259.7 million in money as of March 31 and had posted a lack of $125.2 million within the three months previous to the date.
Lordstown additionally mentioned within the submitting that it nonetheless wants to finish growth of its pickup, together with acquiring regulatory approval. The corporate’s final replace on manufacturing pointed to a begin date of late September. Lordstown plans to construct the Endurance at a former Normal Motors plant situated in Ohio, which it acquired in 2019.
Lordstown’s shares, which commerce on the Nasdaq, ended Tuesday at a worth of $11.22, down from the excessive of $31.80 final Sept.
The most recent information comes after well-known quick vendor Hindenburg Analysis in March issued warnings in regards to the credibility of claimed pre-orders for Lordstown’s pickup. This is similar firm that made warnings about rival EV startup Nikola final yr, resulting in Trevor Milton, Nikola’s founder and chairman on the time, stepping down.
Ought to Lordstown handle to get the Endurance into manufacturing, the corporate shall be confronted with extra hurdles. Ford has simply unveiled an electric version of its top-selling F-150 pickup that’s priced from a really affordable $39,974, or roughly $12,500 lower than what Lordstown mentioned it is going to cost for its personal pickup. Chevrolet can also be near unveiling an electric version of its top-selling Silverado, after which there’s the opposite electrical pickups just like the Tesla Cybertruck and Rivian R1T to compete with.