![]() ![]() Its stock price is currently hovering at 39 cents after peaking at $31.57 in early 2021. The EV maker had just $108.1 million in cash (and cash equivalents) on March 31st. Lordstown was one of the most highly anticipated EV makers, claiming to have secured over 100,000 orders for its Endurance electric truck. Lordstown reported a net loss of $171.1 million in the first quarter of this year, following a loss of $89.6 million in the same quarter a year ago. However, it concedes that bankruptcy is on the table if it can’t resolve the dispute “in a timely manner on terms that allow us to continue operating as planned” or find other strategic partners. Lordstown said it believes Foxconn’s claims are without merit and considers their investment agreement to remain in effect while talks continue. (That followed a previous deal where Foxconn bought its Ohio factory.) In the letter, Foxconn told Lordstown it breached the agreement because the startup’s stock price fell below $1 per share for 30 straight trading days, leading to a NASDAQ delisting notice. “To date, we have not identified a strategic partner for the Endurance.”Īccording to the SEC filing, Foxconn sent a letter to Lordstown on April 21st, threatening to terminate the two companies’ investment deal, which saw the Taiwanese manufacturer investing up to $170 million in the startup. On its second-quarter earnings, Lordstown said it would need at least. “Due to the production delays from early January to mid-April 2023, the failure to identify a strategic partner for the Endurance, and extremely limited ability to raise capital in the current market environment, we anticipate production of the Endurance will cease in the near future,” the company wrote in today’s filing. The sale was completed in May 2022, with Foxconn’s CEO vowing Endurance deliveries would begin before the end of the year. ![]() The warning follows a separate filing from earlier this week saying it could file for bankruptcy if its deal with Foxconn can’t be resurrected. The Endurance electronic pickup truck maker said today that it expects to stop producing the vehicle “in the near future” if it can’t find a partner to keep it afloat. top speed of 80 mph (128 km/h) all-wheel drive with 4 in-wheel hub motors. EV startup Lordstown Motors is still in trouble after pausing production earlier this year. 2020 Lordstown Endurance info: at least 200 miles (320 km) of EPA range. ![]()
0 Comments
Leave a Reply. |