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Economy

Lordstown Motors: Electric truck startup warns it may go out of business

2021-06-11

[MSN] Lordstown Motors, the startup electric truck maker, warned Tuesday it is close to running out of cash and may be forced out of business in the next year.

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 over the previous three months.

It said it's ability to stay in business "is dependent on its ability to complete the development of its electric vehicles, obtain regulatory approval, begin commercial scale production and launch the sale of such vehicles." It is seeking additional financing.
Sounds like either fraud or managerial incompetence. They should have known what their burn rate was going to be before they started.

Posted by:Fred

#16 Have you seen any proposals, construction of a power plants recently ?

Not just power plants, but transmission lines, too. And we will need charging stations too. Can you say "environmental impact lawsuits up the wazoo"? I knew you could!

Something I learned recently about Teslas:
they weigh roughly 4,000 lbs gross and use a battery that weighs 1,000 lbs. In contrast, 15 gallons of gas weighs about 90 lbs.

The point here is that every time you speed up or brake in your 'efficient' electric vehicle, you are accelerating a half-ton of dead weight. Every time.

Posted by: SteveS 2021-06-11 19:51

#15 No problem! We'll just import electricity from our enemies.
Worked so well for Oil.

Posted by: CrazyFool 2021-06-11 16:07

#14
Since Texas and California consume more electricity than any other states, they provide a good snapshot of what a future filled with electric vehicles might look like. In both cases, an increase in EVs would drive consumption higher, with the potential to strain local infrastructure.

If virtually all passenger cars in Texas were electrified today, the state would need approximately 110 more terawatt-hours of electricity per year — the average annual electricity consumption of 11 million homes. The added electricity demand would result in a 30 percent increase over current consumption in Texas.

By comparison, because of a more temperate climate, California might require nearly 50 percent more electricity than it currently consumes if passenger vehicles in the state were fully electrified. That means California would need to generate an additional 120 terawatt-hours of electricity per year.

Posted by: Zenobia Ghibelline1171 2021-06-11 15:02

#13 ^First better accumulators. Then, nuclear power stations.

Posted by: g(r)omgoru 2021-06-11 14:52

#12
Any country switching to 'electric vehicles' must ramp up power generation by a factor of 7% per year starting yesterday.

Have you seen any proposals, construction of a power plants recently ?

Posted by: Zenobia Ghibelline1171 2021-06-11 14:51

#11 ^Yea, but with electric you can put a separate engine in each wheel - one that can run in two directions.

Posted by: g(r)omgoru 2021-06-11 14:49

#10 medium trucks are ideal for an electric hybrid model (and there are some)

the all electric requires too much battery space unless it is going to be used solely for less than 100 mi trips with time to recharge

large long distance trucks have diesel engines that are magnificently efficient

Posted by: Lord Garth 2021-06-11 14:40

#9 Last one.

Posted by: Dale 2021-06-11 14:27

#8 Domestic Toyota.

Posted by: Dale 2021-06-11 14:19

#7 Large disposal company here in the USA can't order gas or diesel garbage trucks as told to me by an employee. Just none available. So

Posted by: Dale 2021-06-11 14:15

#6 Hydrogen works.

Posted by: Dale 2021-06-11 14:09

#5 Hydrogen fueled trucks BOOM

Posted by: g(r)omgoru 2021-06-11 14:03

#4 Hydrogen fueled trucks being made now. Electric major failure as I see it. I believe the only reason they want electric is to reduce our ability to move about freely.

Posted by: Dale 2021-06-11 13:37

#3 Yes. The "stonks" crowd stinks stank stunk.

Posted by: M. Murcek 2021-06-11 10:06

#2 This is exactly the kind of mismanaged POS company that the WallStreetBets-Reddit morons (self-labeled "apes") would embrace. Short squeeze! ! !

Posted by: Spanky Thamble3121 2021-06-11 08:54

#1 How much subsidy money went down the rathole?

Posted by: M. Murcek 2021-06-11 07:50

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