Thursday, 10 June 2021 18:12

Lordstown Motors: We Require Additional Capital to Continue

Written by Mark Kane, Inside EVs



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Lordstown Motors, after showing a net loss of $125 million in Q1 2021 and reporting the initial production of the Lordstown Endurance pickup will be limited by at least 50%, now says it needs a cash injection, or there will be a problem.

Here is the key part in the latest Form 10-K filling:


"We require additional capital to implement our business plan, and it may not be available on acceptable terms, if at all, creating substantial doubt as to our ability to continue as a going concern."


According to Lordstown Motors' Q1 report, 48 of 57 beta vehicles were built, and the beta program is expected to conclude by the end of June. The Lordstown Endurance also passed two of the most difficult crash tests, frontal and pole.


The initial production is expected to start in late September 2021, but at a limited, undisclosed capacity: "Expected Endurance production in 2021 will be limited and would at best be 50% of our prior expectations."


Lordstown Motors explained it has encountered various challenges affecting the launch of the Endurance:


"These include significantly higher than expected expenditures for parts/equipment, expedited shipping costs and expenses associated with third-party engineering resources," Lordstown said. "We secured a number of critical parts and equipment in advance, so we are still in a position to ramp the Endurance, but we do need additional capital to execute on our plans. We believe we have several opportunities to raise capital in various forms and have begun those discussions."


The biggest problem is...

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