Lordstown Motors has said that it will not be able to start production of the Endurance pickup truck unless it raises more money.
In a regulatory filing made with the Securities and Exchange Commission (SEC), the electric start-up acknowledged that it may not be able to survive as a “going concern,” a financial phrase used to flag survival problems.
“[Lordstown’s] ability to continue as a going concern 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. The Company believes that its current level of cash and cash equivalents are not sufficient to fund commercial scale production and the launch of sale of such vehicles. These conditions raise substantial doubt regarding our ability to continue as a going concern,” the filing reads.
Read Also: Lordstown Halves Production Goals For 2021, Needs More Capital
Lordstown had $587 million in cash at the end of March and reported a net loss of $125 million for the first quarter. It added in its filing that “management is currently evaluating various funding alternatives and may seek to raise additional funds through the issuance of equity, mezzanine or debt securities, through arrangements with strategic partners or through obtaining credit from government or financial institutions.”
In late May, Lordstown Motors chief executive Steve Burns said that the company would need to raise more capital to reach its target of building 2,200 pickup trucks by the end of the year.
Last week, the car manufacturer revealed that it had received a letter from the SEC informing it that it could be delisted from the Nasdaq stock exchange because it was late in filing its quarterly report, The New York Times reports.
