But on Tuesday, the startup said it no longer had enough money to start commercial production. He warned that there was now “significant doubt”
The company’s statement said it had $ 259.7 million in cash as of March 31, after reporting a net loss of $ 125.2 million in the previous three months.
According to him, the ability to stay in business “depends on its ability to complete the development of its electric vehicles, get approval from regulators, start production on a commercial scale and start selling such vehicles.” She is looking for additional funding.
The company declined to comment further than the statement in a statement, saying it was still focused on starting production in late September.
Lordstown Motors faces stiff competition as more established carmakers announce plans for their own electric pickups.
Doubts about the company’s viability were raised long before Tuesday’s filing. In March, Hindenburg Research, a company that bets that a company’s stock price will fall, questioned the validity of contracts that Lordstown Motors told investors it had in hand. It is also said that Endurance caught fire during its first test drive. Lordstown shares lost 37% of the Hindenburg report by the end of Tuesday.
Lordstown confirmed the fire, which he attributed to a human error in building the prototype. But he denied Hindenburg’s questions about his sales contracts and insisted he had done nothing wrong. However, he also revealed on Tuesday that he had received two subpoenas from the Securities and Exchange Commission, which is considering pre-orders for his trucks. He said he was cooperating with the probe.
Tuesday’s declaration was a revision of the 2020 results presented earlier this year.