The Lordstown Motors manufacturing facility is the place GM as soon as operated, in Lordstown, Ohio, on October 16, 2020.
Megan Jelinger | AFP | Getty Pictures
U.S. electrical truck maker Lordstown Motors stated on Tuesday there was “substantial doubt” about its capacity to proceed as a going concern, sending its shares down 16%.
“The corporate believes that its present stage of money and money equivalents should not enough to fund industrial scale manufacturing and the launch of sale of such automobiles,” Lordstown stated in a quarterly submitting with the U.S. Securities and Trade Fee.
“These situations elevate substantial doubt concerning our capacity to proceed as a going concern for a interval of not less than one 12 months from the date of issuance of those unaudited condensed consolidated monetary statements,” the corporate added.
A Lordstown spokesman couldn’t instantly be reached for extra remark.
Lordstown, which went public final 12 months by means of a reverse merger with a special-purpose acquisition firm (SPAC), has struggled with the launch of its Endurance pickup truck. The truck is being constructed at a former Normal Motors plant in northeast Ohio.
Final month, Lordstown stated its Endurance manufacturing this 12 months could be half its prior expectations and it wanted extra capital to execute its plans.
In March, Lordstown’s shares slumped after Hindenburg Analysis disclosed it had taken a brief place on the inventory, saying the corporate had misled customers and traders.
Brief sellers wager the worth of a inventory will fall by borrowing shares within the hope of shopping for them again at a less expensive value and pocketing the distinction.
GM, which is a minority shareholder in Lordstown, declined to touch upon the Lordstown submitting.
Lordstown reported a web lack of $125.2 million for the quarter ended March 31, and had money and money equivalents of about $587 million and an accrued deficit of $259.7 million as of March 31.
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