The news, which sent Lordstown shares down about 20% in midday trading Wednesday, is a blow to not only the company but also to the gritty industrial town from which it gets its name. For 53 years, Lordstown, Ohio, was home to a massive General Motors plant, which GM closed in 2019.
The car giant sold the 6.2 million square foot factory, nearly twice the size of the Pentagon, later that year to start-up Lordstown Motors, which promised to pay union-level wages to workers to build its Endurance pickup truck. It is due to start production of that truck in September. Lordstown currently has about 600 employees.

But Tuesday the startup said it no longer has enough money to start commercial production. It warned there is now “substantial doubt” about its ability to stay in business over the course of the next 12 months.

The company filing said it had $259.7 million in cash on hand as of March 31, after posting a net loss of $125.2 million…

Read more…

Share.

Comments are closed.