EV Truck Maker At Risk of Failing
June 10, 2021—Lordstown Motors, the Ohio-based electric vehicle startup, this week in a filing said it was at risk of failing.
Despite having nearly $600 million in cash and cash equivalents as of the end of the first quarter, Lordstown amended an annual report to the U.S. Securities and Exchange Commision, saying it was possible it would no longer function in a years time, as reported in Financial Times.
The report says the company is unlikely to produce the Endurance, an electric truck aimed at commercial operators. The company was accused by a short seller earlier this year of inflating orders, Financial Times reports, something the company denies.
In January, Lordstown Motors said it had received 100,000 orders for the Endurance.
The company in 2019 took over a former General Motors plant with a plan to hire 400 workers; GM loaned Lordstown Motors $40 million for the factory purchase and invested $75 million into it, Financial Times reports.