Embattled EV Startup Lordstown Receives $400M Investment
July 29, 2021—Lordstown Motors, an Ohio-based electric truck manufacturer, has received a $400 million investment from a hedge fund.
In a filing sent to the Securities and Exchange Commission Monday, the company said hedge fund YA II PN Ltd agreed to buy $400 million in shares over the next three years, according to the Detroit Free Press. Shares of the company, which had fallen by more than 60 percent this year, climbed by about 2 percent following the announcement.
The embattled EV producer has struggled in its efforts toward producing a pickup by the end of the year; after saying it had enough orders to maintain production through 2022 earlier this year, the company more recently came out and said it has no firm orders for its vehicles. Both the CEO and CFO resigned in light of the scrutiny. The company has also received two subpoenas from federal regulators and New York prosecutors have opened an investigation.
Despite the turbulence, the company's new chairwoman said plans to start making its electric Endurance pickup are still in the works.