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Lordstown Motors Under DOJ Investigation As Company Teeters Toward Death

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It wasn’t that long ago that the future of EV startup Lordstown Motors looked pretty bright. The automaker had reportedly secured 100,000 reservations for its Endurance pickup and planned to begin production this September. Then, Lordstown was accused of misleading the public about its actual reservation total, while an Endurance prototype caught on fire shortly thereafter.

After the reveal of the Ford F-150 Lightning, Lordstown said that it would be forced to slash its production forecast for the year to “at best 50 percent” of its planned 2,200 vehicle run. Shortly after admitting that it may be forced into bankruptcy, Lordstown execs CEO Steve Burns and CFO Julio Rodrigue resigned from the company.

If all of that wasn’t bad enough, now that investors are souring on EV SPACs and the Department of Justice is cracking down on them, it appears that Lordstown Motors is also the subject of a new DOJ investigation, as first reported by The Wall Street Journal. News of the investigation sent the automaker’s stock price plummeting 17 percent before trading was halted due to volatility.

“Lordstown Motors is committed to cooperating with any regulatory or governmental investigations and inquiries,” a company spokesperson said in a statement. “We look forward to closing this chapter so that our new leadership – and entire dedicated team – can focus solely on producing the first and best full-size all-electric pickup truck, the Lordstown Endurance.”

In the meantime, Lordstown is exploring its options in terms of raising additional capital, including a $200 million dollar loan from the Advanced Technology Vehicles Manufacturing program and a U.S. retooling loan from the U.S. Energy Department. The automaker previously said that its ability to avoid bankruptcy “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 everything Ford and Lincoln’s competition is up to soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

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Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. Jean-Francois Rivard

    Your tax dollars at work… Ever heard of Solyndra?

    Reply
  2. William Kircher

    Gm new battery plant is next door. This and a huge Lordstown plant could indicate someone else moving in after purchasing the remains of Lordstown Motors.

    Reply
  3. Mark

    Isn’t this the company where those GM clowns invested in instead of paying their debt back to the American tax payers?😂 The only new EV company I think will make it is Rivian due to its features, range, and quality.

    Reply
  4. Richard

    Reminds me of the dot.com bubble.

    Reply
  5. Joel

    They have no debt so funding might not be very difficult to recieve, they also have chips on hand, and are backed by General Motors with a product built for fleets specifically. They will also go-to-market before the Lightning. Ford needs to focus on getting product out to their own dealers and keep the plants running.

    Reply
  6. blksn8k

    I won’t be the least bit surprised if the current DOJ investigation is aimed at Trump’s promotion of Lordstown during the last election. The Dems will weaponize the DOJ to try and implicate Trump in any and every way possible to influence voters long before 2024. Mark my words. Disgusting political BS.

    Reply
  7. Tmoney

    It’s interesting Steve Burns cashed in his stocks and walked away a multimillionaire while everyone else pays the price.

    Reply
  8. Lee

    There’s the death ☠️💀 bell 🔔🎐 noise again. Lordstown is just the first… there’ll be more, lots more. I’m keeping my two internal combustion engine powered Ford trucks.

    Reply
  9. Cory R

    Hilarious and misleading. How much is Ford paying you these days?

    Reply
  10. George

    What a low blow on another American company.. what the BS is that. Lordstown will be fine. They got rid of the bad apple before the whole batch spoiled. Zero Debt. Working Betas!!! Investors week! Pshhh it’ll be fine

    Reply

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