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The headquarters of Lordstown Motors is in Ohio. Photo: Dustin Franz/Bloomberg News Updated June 8, 2021 4:04pm ET
Lordstown Motors Corp. revealed. RIDE startup electric trucks – 16.27% in a new regulatory filing on Tuesday that it does not have enough cash to start commercial production and has doubts about its ability to continue as a going concern until the end of the year.
The company revised its annual report to include a continuity notice, which could indicate problems with companies’ survival within the next 12 months. The warning comes as new challenges emerge for the two-year-old company trying to convert a former General Motors plant in Ohio to produce electric pickup trucks. It said its first model, the Endurance, will begin production in September.
Lordstown Motors CEO Steve Burns said on a call with analysts in late May that the startup would need to raise capital to meet its goal of building 2,200 pickup trucks by the end of the year. The company said at the time that higher-than-expected costs were accelerating its cash burn and that it would end the year with between $50 million and $75 million.
The company was among a number of new electric vehicle startups that went public last year through reverse mergers with Special Purpose Acquisition Companies, or SPACs. Lordstown raised $675 million from a reverse merger last fall, a deal that valued the ambitious truck maker at $1.6 billion.
The company did not immediately respond to requests for comment.
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