Lordstown Motors admits it doesn’t have enough money to start production

Lordstown Motors admits it doesn’t have enough money to start production

June 10, 2021 0 By autotimesnews

American startup Lordstown Motors has announced that it will not be able to start mass production of the Endurance truck if it does not raise the necessary amount of money.

In a regulatory filing with the US Securities and Exchange Commission (SEC), electric startup Lordstown Motors admitted that it may not be able to survive as a “business continuity,” a financial phrase used to denote survival concerns.

“[Lordstown Motors] ‘s ability to effectively continue its operations depends on a number of factors, in particular the ability to complete the development process of its electric models, obtain approval from the necessary authorities, start mass production and then sell electric vehicles. We have rather big doubts about the possibility of achieving these goals, ”the official statement reads.

Lordstown Motors had $ 587 million in cash at the end of March and had a net loss for the first quarter of $ 125 million.

Representatives of the startup separately noted in their documentation that “the current management is evaluating possible ways of financing, in particular the issue of shares and debt securities, the conclusion of various kinds of agreements with strategic partners.”

At the end of May, Steve Burns, the startup’s chief executive, said the company would need to raise additional capital to meet its goal of building 2,200 pickups by the end of the year.

Not so long ago, AutoTimesNews wrote that Volkswagen electric cars will be equipped with an advanced level 5 autopilot. The German automaker is working on a new software architecture for its models, known as the “new brand DNA”.