Startup Lordstown Motors warns that it may not be able to continue its business


Detroit (AP) — Commercial vehicle start-up Rosetown Motors says it could shut down in a year as it seeks to secure funds to start full production of electric pickup trucks. Stated.

In a quarterly regulatory filing on Tuesday, Lordstown began commercial production of $ 587 million, which it had as of March 31, and sold a full-size pickup called Endurance. Said not enough to get started.

“These situations raise great doubts about our ability to survive as a going concern for at least a year,” the company said in a document filed with the Securities and Exchange Commission.

The company’s stake, set up at the currently closed General Motors plant east of Cleveland, fell 16.2% to $ 11.22 on Tuesday. I lost another 3% in after-hours trading.

On May 24, CEO Steve Burns warned that this year’s production could be cut by more than half to 1,000 units unless Rhodestown raises private new capital.

The submission to the SEC on Tuesday seems much more disastrous. “Going concern” is a term commonly used by companies to point out that outside corporate auditors are questioning their ability to continue their business.

Lordstown announced that it had a net loss of $ 125 million in the first quarter and was in the red of $ 259 million as of March 31st.

According to the filings, management is valuing new sources of funding, such as issuing more shares and borrowing from partners, governments and financial institutions.

“There is no guarantee that such funding will be available on favorable terms or at all,” the application states.

Burns said in May that the company expects to lose up to $ 380 million this year, but has assured investors that Lordstown will end 2021 with at least $ 50 million in cash.

He said the company plans to start manufacturing Endurance in September.

The $ 52,500 durability will pass two of the U.S. government’s toughest crash tests and will beat Ford Motor Co.’s electric F-150 on the market, he said, and Lordstown buys about 30,000 trucks. He added that he had a contract.

A spokeswoman for the company said it could only comment on Mr. Burns’ guidance since May.

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