Lordstown Motors, an EV start-up that aimed to revive a shuttered General Motors factory in Ohio, said that it does not have enough cash to start commercial production of its electric pickup truck and might have to close its doors, The New York Times reports.
In a regulatory filing, Lordstown said it will not be able to begin “commercial scale production” without raising more money from investors and lenders.
“If we are unable to raise additional capital in the near term, our operations and production plans will be scaled back or curtailed and, if any funds raised are insufficient to provide a bridge to full commercial production and generation of sufficient funds from operations, our successful operation and growth would be impeded,” the filing states.
The company, which was once held up as a savior by former President Donald Trump, has been under investigation by the SEC since February. The investigation is focused on the company’s October merger with DiamondPeak Holdings, as well as preorders for its vehicles. Read more.
