It looks like Lordstown Motors is dead in the water
The company is financially in dire straights and any hopes of production are dead in the water
Remember Lordstown Motors? That EV startup from Ohio that wanted to introduce a fully electric full-sized pickup before the Tesla Cybertruck? Well, it looks like the fledgling company is in a lot of trouble. Lordstown Motors has already been a magnet for controversy in the year or so since it unveiled the Endurance pickup truck. Whilst the Endurance looked attractive on paper (600 hp, around 250 miles of range and a price tag of under $55,000), not all was good under the hood when it came to the company itself. Rumours abounded about Lordstown Motors faking pre-orders and not paying its taxes, amongst other things, and those rumours only amplified further and further as time went on. Clearly Lordstown is strapped for cash and, if you believe what CarBuzz has to say about it, the company may be so bereft of money that it's actually going to cease operating altogether.
Image: Lordstown Motors
CarBuzz's sources have claimed that Lordstown Motors made a filing to the US Securities and Exchange Commission very recently. These sources stated that Lordstown "is unable to begin production and may cease to exist entirely." They went on further to explain that the filing to the SEC states that Lordstown needs to "obtain additional funding to ramp up the production phase of our operations, including to begin commercial scale production", as well as saying that the company's management is "evaluating various funding alternatives" to make sure the company doesn't go bust.
Image: Lordstown Motors
It only gets worse from here on, too. On Tuesday this week Lordstown's stocks closed at $11.22 (a very significant drop from the opening price that day of $15.50) and, due to the late filing of its required quarterly SEC report, the company is in danger of being de-listed from the NASDAQ entirely. General Motors, a significant shareholder in Lordstown Motors, has also sold the assembly plant that was intended to produce the Endurance. The sale of the assembly plant has to be the biggest slap in the face in this regard, as it means that Lordstown has absolutely no hope of producing the Endurance at all unless it can scrape together any kind of funding to find a new place to build the truck.
If you think all of this combined is a horror show of a situation for a company to be in, you'd be absolutely right. Lordstown Motors is a sitting duck with terrifying financials, plummeting share prices and no hope for any kind of full-scale production. Factor in that big brands such as Ford and Chevrolet are gearing up to release their own electric full-sized pickup trucks very soon and Lordstown Motors and its sole potential offering may very well be dead in the water. We'll have to see how things play out, but yet again it seems like things aren't looking great for an American EV startup... or alternatively, as one analyst in the CNBC video I've linked above said, Lordstown Motors could become a prime target for people to buy it up as a so-called 'meme stock'. If the share prices start ballooning by 300% or more, then you'll know whether r/WallStreetBets has cottoned onto it or not!