Lordstown Motors Warns it Can’t Start Production
Lordstown warned that its cash balance means it might not survive.
Electric truck start-up Lordstown says it doesn’t have cash to start commercial production.
Lordstown gained attention after it bought an auto plant in Ohio to build its truck, the Endurance.Credit…David Maxwell/EPA, via Shutterstock
By Vikas Bajaj
June 8, 2021, 4:07 p.m. ET
Lordstown Motors, a company that hoped to produce electric pickup trucks at a former General Motors factory in Ohio, said on Tuesday that it did not have enough cash to start commercial production and might have to close its doors.
In a securities filing, the company, which is being investigated by the Securities and Exchange Commission, said the amount of cash it had was “not sufficient to fund commercial scale production.”
Lordstown added that there was “substantial doubt regarding our ability to continue as a going concern” — a legal phrase companies often use to alert investors that they might not survive.
The company, which went public last year by merging with a special purpose acquisition company, had $587 million in cash at the end of March, down from more than $629 million at the end of last year.