Lordstown Motors, a start-up aiming to make electrical pickup vans, mentioned on Monday that it would “at best” make simply 50 p.c of the vehicles it had beforehand hoped to this yr, except it is ready to increase further capital.
“What we are saying is that if we don’t get any funding, we might only make half of what we thought,” Lordstown’s chief govt, Steve Burns, mentioned throughout a convention name.
Mr. Burns mentioned the firm was nonetheless on observe to start making vans by September.
Lordstown has had discussions with some strategic buyers who may pump cash into the firm, he mentioned, and it has seemed into borrowing cash by utilizing its plant or different belongings as collateral.
He additionally mentioned the firm was trying into borrowing from a federal authorities program meant to assist the improvement of electrical vehicles, however it is unclear if it has any funds left to lend out.
Lordstown would be capable of make as many as 2,200 vans by the finish of the yr if it will get funding, Mr. Burns mentioned. Without further capital, it would most likely make fewer than 1,000.
Mr. Burns has been hoping Lordstown can be the first to supply an electrical pickup truck geared toward business fleets akin to giant development and mining corporations, however it will quickly face some formidable competitors. Ford Motor final week unveiled an electrical model of its F-150 pickup that’s presupposed to go on sale subsequent spring.
Lordstown gained consideration as a result of it purchased an auto plant in Lordstown, Ohio, that General Motors had closed. It was additionally as soon as hailed by former President Donald J. Trump for saving manufacturing jobs.
It turned a publicly traded firm final yr by merging with a particular function acquisition car, an organization arrange with money from buyers and a inventory itemizing. Several different electrical car and associated companies have gone public via comparable mergers in latest months, taking benefit of buyers’ want to seek out the subsequent Tesla.
Lordstown, which is being investigated by the Securities and Exchange Commission, mentioned it misplaced $125 million in the first quarter of 2021, however ended the interval with $587 million in money.
After the information of its manufacturing outlook was launched, Lordstown’s inventory fell greater than 9 p.c in after-hours buying and selling, to only below $9. The inventory briefly traded at about $30 final yr.