Electric truck startup Lordstown Motors Corp. disclosed that it doesn’t have sufficient funds to launch a full commercial production and has doubts regarding whether it can continue as a going concern through the end of the year.The disclosure Tuesday marks the latest difficulty for Lordstown Motors, one of several electric-vehicle and battery startups that went public last year through reverse mergers with special-purpose acquisition companies, or SPACs.Lordstown Motors amended its annual report to include the going-concern notice, which can flag issues with survival for businesses. 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 manufacture electric pickup trucks. It has stated that its first model, the Endurance, will launch production in September.A spokesman for Lordstown Motors stated that the company isn’t moving back its September target for the start of production and hopes to increase more capital, possibly through asset-backed financing or a government loan program. He declined to comment on why an ongoing concern wasn’t added in the company’s original annual report filed in March.
Lordstown Motors States that it Doesn’t Have Cash to Start Commercial Production
Published by
November 28, 2024
(GMT+2)
WHAT TO READ NEXT
No items found.
STOCK ANALYSIS
MARKET OVERVIEW
SIMILAR NEWS
Ready to get started?
Start trading with the full package, from state of the art platform to free tool and favorable transaction fees.
All investments involve risks, including the possible loss of capital.
www.mexem.com is a website owned and operated by MEXEM Ltd. MEXEM Ltd is a European broker regulated by CySEC, license No. 325/17.
Read our Forms & Disclosures.
Any advertisement or communication concerning the distribution of derivatives falling within the scope of the Regulation of the FSMA of 26 May 2016 governing the distribution of certain derivative financial instruments to retail clients is not addressed to the Belgian public.