But Tuesday the startup said it no longer has enough money to start commercial production. It warned there is now “substantial doubt” about its ability to stay in business over the course of the next 12 months.
The company filing said it had $259.7 million in cash on hand as of March 31, after posting a net loss of $125.2 million over the previous three months.
It said it’s ability to stay in business “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.” It is seeking additional financing.
The company declined to comment beyond the statement in the filing, saying it is still focused on beginning production at the end of September.
Lordstown Motors faces fierce competition as more established automakers announce plans for their own electric pickups.
Doubts about the company’s viability were raised well before Tuesday’s filing. In March, Hindenburg Research, a firm that makes bets that the price of a company’s stock will go down, questioned the validity of the contracts that Lordstown Motors was telling investors it had in hand. It also said that the Endurance had caught fire on its first test drive. Shares of Lordstown have lost 37% since the Hindenburg report through Tuesday’s close.
Lordstown confirmed the fire, which it attributed to human error while building the prototype model. But it denied Hindenburg’s questions about its sales contracts and insisted it had done nothing wrong. However it also disclosed Tuesday that it has received two subpoenas from the Securities and Exchange Commission, which is looking into pre-orders for its trucks. It said it is cooperating with the probe.
The filing Tuesday was a restatement of its 2020 results filed earlier this year.