American electric vehicle maker Lordstown Motors Corp. is unsure if operations will survive for another year due to the insufficient cash reserves, Business Journal Daily reported.
- Lordstown believes the current level of cash and cash equivalent are not enough for commercial production and vehicle launches. Current conditions spur doubt to continue for at least a year from Tuesday.
- The company is studying a possible fundraising through equity, mezzanine, or debt securities but flagged that such options will be made on favorable terms.
- Lordstown will limit production of its all-electric full-size pickup Endurance this year. It will need additional funding to boost assembly and reach full-scale commercial production in 2022.
- The company was ordered by the Securities and Exchange Commission to forward documents and information related to its merger with DiamondPeak Holdings Corp., along with early orders of its products.
Lordstown is cooperating with the corporate regulator to address the issues. RIDE is down 2.76% premarket.