Lordstown Motors, the cash-powered electric pickup start-up, said on Wednesday it won’t begin “limited production” until the end of September and expects it to be the case for the rest of this year.
The company indicated in a release of its second quarter financials that it still needed funds to meet its final production targets. Lordstown said it had $366 million in cash on hand at the end of June and expected to have no more than $275 million available by the end of September unless it comes with new funding.
Lordstown has previously said it may not be able to continue as a going concern without new funding sources.
The report comes after a tumultuous year for Lordstown. Expectations for the start-up grew after it merged with DiamondPeak Holdings, a cash-rich special-purpose company led by a Wall Street real estate investor, who called in about $700 million to fund the deal.
The company has used up nearly half of that money in just six months. It said it is considering making space to “house additional manufacturing partners” at a 6.2 million-square-foot facility in Ohio that it has acquired from General Motors.
The company, which has yet to produce a truck, said it lost $108 million in the second quarter.
Lordstown has been in a tailspin since March, when a research firm released a critical report on the company’s claims it had 100,000 pre-orders for its yet-to-be-built truck. The company has since disclosed that it is under investigation by federal prosecutors in New York and the Securities and Exchange Commission.
The company attempted to revive its fortunes this summer by appointing a new management team following the resignation of founder and CEO Steve Burns. Lordstown, which has warned investors that cash is needed to continue operating, struck a deal to periodically sell shares to a New Jersey investment firm to raise up to $400 million.
But auto industry experts argue that Lordstown will need much more money to produce its pickup, which it calls Endurance, at a scale that would make it commercially viable.
Shares of Lordstown have plummeted since the spring, when it traded at a near-record price of about $31 a share. It closed at $5.58 on Wednesday.
Earlier this week, Workhorse Group, another electric vehicle manufacturer, announced it had sold more than 70 percent of its original 10 percent stake in Lordstown, for about $79 million — $52 million less than the shares had originally been valued.
Workhorse was an early investor in Lordstown, in part because Mr Burns was the longtime CEO of Workhorse before leaving early 2019 to found Lordstown.