Electric truck startup Lordstown Motors said Tuesday it lacks sufficient capital to begin commercial production and warned about the ability to keep operating.
The company, which had targeted commercial production to begin in September, has just $587 million in cash, which is “not sufficient to fund commercial scale production and the launch of sale of such vehicles,” Lordstown said in a securities filing.
“These conditions raise substantial doubt regarding our ability to continue as a going concern,” Lordstown added.
The statement, which caused the share price to dive, is the latest sign of trouble at Lordstown, which was launched with fanfare in November 2019 at a former General Motors plant in the Mahoning Valley of Ohio.
Lordstown’s flagship vehicle, the Endurance pickup, visited the White House during Donald Trump’s presidency.
But the company came under withering criticism from shortsellers at Hindenburg Research, which called its investment thesis a “mirage” built on “fake orders” and pointed to various production problems.
Shares took another hit last month after Ford unveiled its first all-electric pickup, a version of its popular F-150 that adds to competition in the segment even if Lordstown manages to reach commercial production.
Shares of Lordstown lost16.3 percent to finish at $11.22.