Lordstown Motors to start production of its electric truck next month

Lordstown Motors to start production of its electric truck next month

Lordstown Motors expects to begin limited production of its electric pickup truck next month, yet the future of the Ohio startup remains hazy.

In addition to this week's announcement that the company, located just outside of Youngstown, aims to commence production in September, Executive Chairwoman Angela Strand said Lordstown also expects to complete vehicle validation and regulatory approvals in December and January. The commercial deliveries to a select group of customers should begin in the first quarter, Strand said with the first deliveries expected early in the second quarter.

Its company has fought to secure new funding but claimed again on Friday that it was unable to guarantee that it will last throughout the year.

Lordstown said it had cash and cash equivalents of approximately $365.9 million and an accumulated deficit of $367.9 million at the end of June. It had a net loss of $233.4 million for the six months ended June 30.

The company repeated Thursday that its current level of cash is not sufficient to fund commercial scale production.

Lordstown raised substantial doubt in regard to our ability to continue as a going concern for a period of at least one year from the date of issuance of these unaudited condensed consolidated financial statements, said.

Shares, which have fallen more than 70% this year, slid another 5% on Friday.

Lordstown has seen increase in the scrutiny of the company after the company acknowledged that it had no firm orders for its vehicles just after saying it had enough demand to maintain production through 2022. The CEO and Chief Financial Officer of the company resigned and this month, Lordstown acknowledged receiving two subpoenas from federal regulators and said that prosecutors in New York have opened an investigation.

The company said its currently evaluating various funding options and may look at raising additional funds.

In a filing filed with the Securities and Exchange Commission last month, Lordstown disclosed that it has received an investment of up to $400 million. Hedge fund YA II PN Ltd promised to buy up to $400 million worth of its shares over three years.