Lordstown Motors reports higher capital requirements

Lordstown Motors reports higher capital requirements

Lordstown Motors plans to start production of its all-electric Endurance pickup truck in September, but now Lordstown CEO Steve Burns has announced that the company needs additional capital, and without it, it can only produce half the number of units it originally targeted.

According to US media, 2,200 Endurance cars had been announced so far. Without the additional funding, it could be less than 1,000 vehicles, as "Carscoops" writes. According to this, Burns is said to have indicated in a conference call that talks with strategic investors have been held. Alternatively, the taking out of a loan is apparently also being investigated, with the production facilities and other assets to be deposited as collateral. It is not clear from the media reports how much money is involved.

Lordstown Motors has been listed since last year after merging with a SPAC. This spring, the company was attacked by short-seller Hindenburg Research. Unlike at Nikola Motor, for example, the short-seller's allegations did not result in the resignation of Lordstown's CEO. According to Hindenburg, the company had discovered that the 100,000 pre-orders were "largely fictitious" and were primarily intended to raise capital. In addition, a prototype of the Endurance is said to have burned out completely during an initial road test in January 2021 - after just ten minutes. The US Securities and Exchange Commission is still investigating the allegations.