Electric delivery truck maker Workhorse Group Inc. said Monday it sold down much of its stake in Lordstown Motor Corp. this summer, reducing its equity position in the embattled Ohio-based startup.
Workhorse, in a company filing, said it had sold 11.9 million shares in Lordstown Motors since July 1, reducing its 9% stake by nearly three-quarters. Workhorse, also based in Ohio, was an early investor in Lordstown Motors , which was established in 2019 by Workhorse founder and former chief executive Steve Burns.
The divestiture comes ahead of Lordstown Motors ’ planned electric-truck launch in September. The startup is cash-strapped and trying to raise additional capital to ensure its survival.
Starting production of Lordstrown Motors’ debut pickup truck, the Endurance, is a crucial target for the startup, which went public last fall through a reverse merger with a special-purpose acquisition company, or SPAC.
In recent months, the company has been rocked by numerous challenges, including federal investigations into its business practices, and the exit of Mr. Burns.
