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Lordstown Motors warns of not having enough cash to build electric trucks

Lordstown Motors is one of the start-ups (Rivian, Canoo) that promise electric pickups that can compete with the current titans of the trucking world. But today’s update shows that the future of the company is in doubt. The New York Times Reports filed with the SEC show that the company can move forward as concerns about going forward are risky. Just because the company doesn’t have enough cash to start producing the Endurance electric truck.

Lordstown Motors:

The Company had cash and cash equivalents of approximately $587.0 million and a cumulative deficit of $259.7 million as of March 31, 2021

, and a net loss of $125.2 million for the quarter ended March 31, 2021 since inception. The company has developed a flagship model, The Endurance, a full-size electric pickup truck. The company’s ability to continue operating depends on its ability to develop electric vehicles. Regulatory approval Started commercial production and launched sales of such vehicles. The Company believes that current cash and cash equivalent levels are insufficient to support the commercial production and launch of the vehicle. These conditions raise serious doubts about our ability to continue operating for at least one year from the date of issue of these unaudited abbreviated consolidated financial statements.

to alleviate these conditions Management is evaluating various funding options. and may seek additional sources of funding through issuing equity, mezzanine or debt instruments. through agreements with strategic partners or through applying for credit from the government or financial institutions As we seek additional funding sources We cannot guarantee that such financing will be available to us on favorable terms or at all. Our ability to find additional funding in the bond and equity markets depends on a number of factors. including market and economic conditions performance and investor confidence in us and our industry.

The company went public in October using a method known as SPAC, a specialty acquisition company. and recently warned investors that the company is at risk of being delisted due to the filing deadline. The plan is to sell trucks to businesses. But with electric pickups coming from Ford and others, it’s going to be tougher to compete, assuming the Endurance hits the market in the first place.

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