DETROIT (AP) — Startup business electrical car maker Lordstown Motors says it may not be in business a 12 months from now as it tries to safe funding to begin full manufacturing of an electrical pickup truck.
In a quarterly regulatory submitting Tuesday, Lordstown mentioned the $587 million it had available as of March 31 is not sufficient to begin business manufacturing and start promoting the full-size pickup, known as the Endurance.
“These conditions raise substantial doubt regarding our ability to continue as a going concern for a period of at least one year,” the corporate mentioned in the submitting with the Securities and Exchange Commission.
Shares of the corporate, which is about up in a now-closed General Motors plant east of Cleveland, fell 16.2% to shut Tuesday at $11.22. The misplaced one other 3% in after-hours buying and selling.
On May 24, CEO Steve Burns warned that manufacturing may very well be reduce by over half to just one,000 automobiles this 12 months except Lordstown raised an undisclosed quantity of latest capital.
Tuesday’s SEC submitting seems to be way more dire. “Going concern” is a time period firms sometimes use when noting that their exterior auditors are questioning their capacity to stay in business.
Lordstown reported a first-quarter web lack of $125 million and mentioned it had a deficit of $259 million as of March 31.
The submitting mentioned administration is evaluating new sources of capital, together with issuing extra fairness or borrowing from companions, authorities or monetary establishments.
“There can be no assurance that such financing would be available to us on favorable terms or at all,” the submitting mentioned.
Burns mentioned in May the corporate expects to lose as much as $380 million this 12 months, however he assured traders that Lordstown will finish 2021 with a minimum of $50 million in money.
He mentioned the corporate expects to begin making the Endurance in September.
The $52,500 Endurance has handed two of the U.S. authorities’s hardest crash checks, and it will beat Ford Motor Co.’s electrical F-150 to market, he mentioned, including that Lordstown has buy agreements for about 30,000 of the vehicles.
An organization spokesman mentioned he may not remark past Burns’ steerage from May.