Starting an automotive company from scratch isn’t exactly an easy task, and many have failed throughout history. Unfortunately, EV-upstart Lordstown Motors appears to be headed in that direction as well. Just a couple of weeks ago, Lordstown announced that it would be slashing its production forecast for the year to “at best 50 percent” of its planned 2,200 vehicle run, and now, the company says that it may not even be able to stay in business for another year, according to CNN.
Lordstown had previously announced that it planned to start production of its Endurance pickup this September but now admits that it is bleeding cash to the point where it doesn’t have enough money to do so. The automaker currently has $259.7 million in cash on hand and is seeking additional financing to keep it afloat.
Lordstown’s woes began months ago after the automaker was accused of misleading investors by falsely claiming that it had received 100,000 reservations from commercial fleet customers, though the automaker denies any wrongdoing. A pre-production Endurance prototype caught fire earlier this year, while the company blames its financial difficulties on COVID-19 related problems, supplier issues, and “higher than expected” parts spending.
The reveal of the Ford F-150 Lightning Pro – which will compete directly with the Lordstown Motors Endurance in the commercial EV pickup segment – also had quite the impact on the automaker’s stock, as it plummeted to around $8.70 per share following the Lightning Pro’s reveal after trading for over $30 per share last fall.
For now, Lordstown says that it can stay in business, but that “is dependent on its ability to complete the development of its electric vehicles, obtain regulatory approval, begin commercial-scale production, and launch the sale of such vehicles.”
We’ll have more on what Ford and Lincoln’s competition is up to soon, so be sure and subscribe to Ford Authority for non-stop Ford news coverage.
Comments
Was Lordstown an honest try that is failing, or is it the next Solyndra?
Maybe they could bring in Stellantis as partner since they don’t have much going on in the EV space.
Don’t let the door hit you on the way out. This is just another Virtue Signalling company that serves no economic purposes. I’m sure a bunch of liberals and governments threw away a ton of money on this farce.
They chose the wrong market to enter, the pick-up market is getting more competitive by the day.
Stellantis, please don’t get involved with this failed company, you’ll be bleeding cash with no positive results.
What’s that rustling noise? Sound like the beginning of another Obama/Biden bailout? Sleepy Joe is already well versed in that sad tune. Government Motors ring a bell for y’all?
Since you don’t like Biden, make sure you return your stimulus (or bailout) check back to the US Treasury.
Like all these ‘Repulican’ farmers that accept govt. subsidies for their tractors? Greed is greed no matter what party you side with
Don’t forget, no Rotten Republican returned Biden’s stimulus checks back to the US Treasury. In fact, I found out some Republican couples managed to keep their combined incomes under $150,000 in order to get the maximum stimulus, they did it by working less overtime.
Now that we’re in Obama’s third term, maybe Sleepy Joe can send them a few trillion!
Man…. some of you guys are tiresome. Said before, go somewhere else with your drivel…. this is a car blog. Startups are by definition risky. It will be interesting to see what, if any technology is attractive to an outside suitor. The business is all about science, not pretty truck and car renderings.