But Tuesday the startup reported it no longer has plenty of money to get started professional output. It warned there is now “significant doubt” about its capacity to keep in business enterprise more than the study course of the next 12 months.
The business filing said it had $259.7 million in money on hand as of March 31, immediately after submitting a internet decline of $125.2 million over the previous a few months.
It mentioned it is means to stay in business “is dependent on its ability to finish the advancement of its electric autos, receive regulatory approval, commence commercial scale creation and start the sale of these vehicles.” It is searching for additional financing.
The organization declined to remark past the assertion in the filing, declaring it is however focused on commencing production at the finish of September.
Lordstown Motors faces fierce competition as additional founded automakers announce plans for their own electric powered pickups.
Uncertainties about the company’s viability had been lifted well ahead of Tuesday’s filing. In March, Hindenburg Exploration, a firm that would make bets that the value of a firm’s inventory will go down, questioned the validity of the contracts that Lordstown Motors was telling traders it experienced in hand. It also explained that the Endurance had caught fireplace on its initial test travel.
“After months of denials, Lordstown is lastly beginning to admit its precarious financial condition and that its previously output projections were nowhere close to truth,” Hindenburg reported a statement late Tuesday.
Shares of Lordstown have missing around half their price considering that the Hindenburg report via Wednesday’s midday fall.
Lordstown confirmed the fire, which it attributed to human mistake when setting up the prototype model. But it denied Hindenburg’s issues about its product sales contracts and insisted it experienced performed nothing erroneous. Even so it also disclosed Tuesday that it has acquired two subpoenas from the Securities and Trade Commission, which is seeking into pre-orders for its trucks. It said it is cooperating with the probe.
The submitting Tuesday was a restatement of its 2020 benefits submitted earlier this year.