Things at the automaker are in freefall.
Of all the recent startups to claim that they are bringing the next great electric truck, Lordstown appears to be struggling the most. The company has been investigated by the feds, then its race truck retired from competition just 40 miles into a race. Things then got worse when it was revealed that the company hasn't been paying taxes. Things surely couldn't get worse than that, but they did. Just last week, reports reached us that the company has filed a statement with the Securities and Exchange Commission saying that it "is unable to begin production and may cease to exist entirely."
Lordstown Motors has seen the proverbial cow dung hit the breeze-producing propeller, but on Wednesday, Reuters reported that there was hope when Lordstown Motors' president claimed to have firm and binding orders for the first two years of production. A day later, that claim seems to have been premature at the least.
It's been a rough week for the company after CEO Steve Burns added fuel to the fire that is the American automaker's affairs by resigning. The company's president, Rich Schmidt, seemed to be doing damage control on Wednesday with the claims of confirmed orders: "Currently, we have enough orders for production for '21 and '22", said Schmidt. "Those are firm orders we have for those two years. I don't know the exact facts of the legal aspect of that, but they are basically binding orders that are committed here in the last two weeks, reconfirmed orders. They're pretty solid, and I think that's on the light side or conservative side."
These comments saw the share price jump by 6.4 percent, but they seem to have been premature, as a new report from the Detroit Free Press outlines.
In a filing made with the Securities and Exchange Commission, the company has now released the following statement: "Although these vehicle purchase agreements provide us with a significant indicator of demand for the Endurance, these agreements do not represent binding purchase orders or other firm purchase commitments." This filing was made because Lordstown says it doesn't have enough money to get the truck to full commercial production. As a result of the filing, the company's share price dipped again before recovering somewhat, but the value of these shares has plummeted by 50 percent in 2021 alone.
We have no idea what the next step is in Lordtown's ambition of staying afloat, but based on recent developments, it seems like just a matter of time before we see another Fisker Karma-esque debacle. Angela Strand, the company's new chairwoman, says that the last week won't affect the company's everyday operations or its plans to make the Endurance, but we'll believe it when we see it.