Somewhat beneath a yr in the past, Lordstown Motors was once vowing that it would completely have its electrical vehicles in manufacturing closing September, which got here and went with out its electrical vehicles being mass produced. In pronouncing its first quarter profits on Monday, Lordstown stated that, in truth, the Staying power will input mass manufacturing q4. Idiot me as soon as, and so forth.
The issue is that Lordstown is working out of cash. This time closing yr it had $587 million in money, in keeping with Reuters, however on Monday Lordstown stated it simplest has $203.6 million as of the tip of March. One spice up may well be the sale of its plant to the Taiwanese company Foxconn, however Lordstown stated Monday that that sale was once now not but ultimate, regardless that it’s making development.
“We also continue to work closely with Foxconn to close our pending transaction and strengthen our manufacturing and product development partnership,” stated Lordstown CEO Daniel Ninivaggi. In line with CNBC, if the deal doesn’t shut, then Lordstown must pay off just about the entire cash it has readily available these days, which means that for Lordstown the stakes couldn’t be a lot upper.
Nonetheless, Lordstown says it spent $87.9 million in running bills within the first quarter, so through the 3rd quarter, when Lordstown says it’ll start business manufacturing of 500 Endurances, it can be as regards to out of cash anyway. This is until, in fact, Lordstown is in a position to draw in new funding, which it stated it will do that yr to the track of $150 million. Lordstown’s inventory is buying and selling at $1.80 in keeping with percentage as of this writing, which is penny-stock territory, and earnings continues to be 0.
I might say who will have observed this coming, apart from that all of us did. Lordstown was once most likely cursed through its affiliation with former President Trump, anyway.
How does this all finish? Neatly, I’m certain many if now not maximum Lordstown staff are these days sprucing their resumes, as a result of until Lordstown pulls off some roughly magic trick, its long term is lovely dim, a sadness to any of the Lordstown locals who most likely nonetheless consider the outdated GM plant, in the event that they ever believed in Lordstown Motors to start with.