Lordstown Says Endurance Electric Pickup Production Will ‘Cease in the Near Future’
Cash-strapped Lordstown Motors says it can’t keep building its lone model without a lot more money.
Lordstown Motors was one of the most prospective candidates in the EV pickup space when it pledged to build the innovative Endurance EV pickup—well, kind of. By the time the automaker was prepared to show off a viable product, it was clear that other legacy automakers were already poised to enter the battery-powered pickup space.
The automaker has since run into a bit of financial difficulty. With a slow production ramp-up, a recall of nearly every vehicle it ever built, and production being suspended over quality control issues—Lordstown's ongoing stint of bad luck (if that's what you can call it) appears to be finally boiling over. Now, the automaker says that without additional cash, it will no longer be able to manufacture further examples of the Endurance.
"Due to the production delays from early January to mid-April 2023, the failure to identify a strategic partner for the Endurance, and extremely limited ability to raise capital in the current market environment, we anticipate production of the Endurance will cease in the near future," wrote Lordstown Motors in its 10-Q filing.
Rumors of the company's tough financial position have been swirling for some time. Most recently, the company has found itself at an "impasse" with Taiwanese tech giant, Foxconn, which previously pledged a $170 million total investment to the automaker. Foxconn has since indicated that it does not intend to close on a subsequent round of funding due to Lordstown being in breach of its investment contract.
Foxconn is referring to a notice recently sent to Lordstown Motors from Nasdaq. The notice informed Lordstown that it could potentially face delisting of its stock, as it failed to maintain a value of at least $1 for 30 consecutive days. Nasdaq says that the company must come back into compliance by maintaining a value of at least $1 for 10 consecutive days by October 16th. At the time of writing, shares of $RIDE are trading at $0.36.
Lordstown says that Foxconn's allegations of breach of contract are “without merit."
Regardless, even if that is the case, it doesn't help Lordstown's financial position. The company went from having an estimated $220 million cash on hand at the beginning of March to $176.7 million by the end of the quarter. It also noted that it faced a total loss of $171.7 million since the beginning of 2023 and still owes $998.9 million in debts. Lordstown says that if it is "deprived of critical funding necessary for its operations," it may need to cease operations or consider filing for bankruptcy.
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