Lordstown Motors is in big financial trouble, report says
The company reports that it will likely lack funding to maintain its status as a "going concern."
Electric truck startup Lordstown Motors looks to be in trouble, with serious doubts as to whether it'd be able to continue functioning long enough to actually produce its Endurance commercial pickup truck, according to a report published Tuesday by the Wall Street Journal.
The fortunes of Lordstown Motors -- named after the old GM plant it bought to produce its vehicles -- have been in doubt for a while now, particularly after Hindenburg Research (aka the firm that also peed in Nikola's Wheaties, figuratively speaking) published a fairly damning report back in March of this year stating that the company had done a lot of unsavory things, like overstating the number of preorders it held for the Endurance.
Some of those accusations made by Hindenburg were proven by Lordstown's own June 8 financial filing, which confirmed that, among other things, it had found serious deficiencies in its internal financial reporting practices, which caused it to miscalculate its position. That, coupled with elevated production costs, likely owing to COVID-19 and the global silicon shortage, mean that Lordstown's future looks very much in doubt.
The company has stated previously that the Endurance commercial electric pickup truck would enter production toward the end of this year. However, even ignoring the previously mentioned issues, there's significantly more competition in the electric truck space now, particularly with the debut of Ford's bargain-priced F-150 Lightning.
What this all boils down to is that, if you had been looking at ordering a Lordstown Endurance for your business, then now might be a great time to start thinking about a very solid Plan B.
Lordstown didn't immediately respond to Roadshow's request for comment.
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