Lordstown Motors Inc., an electric-vehicle startup that recently went public, said it may not have the cash to acquire it. first pickup truck to the market — and can’t last as a company in the next 12 months if it can’t raise more capital.
Revealed in a regulatory filing Tuesday, CEO Steve Burns said during the company’s first-quarter earnings call last month that his company need to raise more money To fund the development of the endurance truck model.
The filing said, “The company’s ability to continue as an ongoing concern will depend on its ability to complete the development of electric vehicles, obtain regulatory approvals, commence commercial scale production and commence sales of such vehicles.” is.” “The company believes that the current level of cash and cash equivalents is not sufficient to commence commercial scale production and sales of such vehicles.”
Lordstown shares fell 16 percent to close at $11.22. The stock fell an additional 6.9 percent as of 4:12 p.m. in New York in postmarket trading.
The announcement is the latest blow to Lordstown, which revealed in March Securities and Exchange Commission investigation in its operation. As recently as a year ago, the startup, which operates out of a closed General Motors plant in Ohio, was lauded by former President Donald Trump’s administration as part of its campaign to create manufacturing jobs.
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