Lordstown Motors headquarters in Ohio.
Photo: Dustin Franz/Bloomberg News
Electric-truck startup Lordstown Motors Corp. RIDE -16.27% disclosed in a new regulatory filing Tuesday that it doesn’t have sufficient cash to start commercial production and has doubts about whether it can continue as a going concern through the end of the year.
The company amended its annual report to include the going-concern notice, which can flag survival problems for businesses within the next 12 months. The warning comes as new challenges emerge for the two-year-old company that is trying to convert a former General Motors Co. plant in Ohio to produce electric pickup trucks. It has said its first model, the Endurance, will start production in September.
Lordstown Motors Chief Executive Steve Burns said on a call with analysts in late May that the startup would need to raise more capital to hit its target of building 2,200 pickup trucks by year-end. The company said at the time that higher-than-expected costs were accelerating its cash burn and that it would finish the year with between $50 million and $75 million on hand.
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 its reverse merger last fall, a deal that valued the aspiring truck maker at about $1.6 billion.
The company didn’t immediately respond to requests for comment.
More to come…
Write to Ben Foldy at [email protected]
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