The company is out of cash and production is going nowhere.
The EV race is well underway, and while large manufacturers start throwing their weight behind the revolution in automotive propulsion, smaller companies such as Lordstown Motors are scrambling for a piece of the pie. The small EV company from Lordstown Ohio revealed its Endurance truck last year ahead of the Tesla Cybertruck and got everyone talking, but the company has since been through troubled waters. In March the company was accused of faking pre-orders and less than a month later it was accused of not paying taxes. This has of course hindered production of the Endurance pickup truck, and now the company is so cash-strapped that it might not be around for much longer.
According to sources, Lordstown Motors recently made a filing to the Securities and Exchange Commission stating that it "is unable to begin production and may cease to exist entirely."
The issue seems to be pretty straightforward: Lordstown Motors needs cash. The filing to the SEC states that the company needs to "obtain additional funding to ramp up the production phase of our operations, including to begin commercial scale production" and goes on to state that management is "evaluating various funding alternatives" to secure the future of the company.
The financial issues at Lordstown Motors run deeper than most previously suspected: on Tuesday the company's stocks closed at $11.22 signifying a significant drop from the opening price of $15.50. To make matters worse, the company is at risk of being delisted from the Nasdaq due to the late filing of its quarterly report to the SEC. General Motors, which owns a significant share of the company, also sold it the Lordstown assembly plant that is currently sitting idle. The only hope for this fledgling EV manufacturer is its Endurance pickup truck which promises 600 horsepower, around 250 miles of range, and a price tag of under $55k. With Ford and Chevrolet ready to unleash all-electric versions of the F-150 and Silverado, it might just be too late for Lordstown Motors.