Electrical-truck startup Lordstown Motors Corp. disclosed that it doesn’t have adequate money to begin full industrial manufacturing and has doubts about whether or not it will probably proceed as a going concern by the tip of the yr.
The disclosure Tuesday marks the newest hassle for Lordstown Motors, one among a number of electric-vehicle and battery startups that went public final yr by reverse mergers with special-purpose acquisition corporations, or SPACs.
Lordstown Motors amended its annual report to incorporate the going-concern discover, which might flag survival issues for companies. The warning comes as new challenges emerge for the two-year-old firm that’s attempting to transform a former Basic Motors Co. plant in Ohio to provide electrical pickup vehicles. It has mentioned its first mannequin, the Endurance, will begin manufacturing in September.
A spokesman for Lordstown Motors mentioned the corporate isn’t transferring again its September goal for begin of manufacturing and hopes to boost extra capital, probably by asset-backed financing or a authorities mortgage program. He declined to touch upon why a going-concern warning wasn’t included within the firm’s authentic annual report filed in March.
As valuations for Tesla Inc. and Chinese language highfliers resembling NIO Inc. soared over the previous yr, traders piled into just a few dozen electric-transportation newcomers that need to faucet the expansion potential of battery-powered autos. Lordstown Motors raised $675 million from its merger final fall in a deal that valued the aspiring truck maker at about $1.6 billion.
