GM Volt Forum banner
1 - 9 of 9 Posts

·
Administrator
Joined
·
21,102 Posts
Discussion Starter · #1 ·
Lordstown Motors’ cash-rich SPAC dreams have turned out to be nothin’ more than wishes, as Alex Wilhelm and Aria Alamalhodaei reported. The upshot: a disappointing first-quarter earnings that was a pile-up of red-ink-stained negativity. The lowlights include higher-than-expected forecasted expenses, a need to raise more capital and lower-than-anticipated production of its Endurance vehicle this year — from around 2,200 vehicles to just 1,000. In short, the company is set to consume more cash than the street expected and is further from mass production of its first vehicle than promised.


Lordstown warns of going concern risk, shares tank.

Electric truck maker Lordstown Motors Corp expressed doubts about its ability to continue as a going concern, the company said in a regulatory filing on Tuesday, sending its shares down more than 20%.

"We believe that our current level of cash and cash equivalents are not sufficient to fund commercial scale production and the launch of sale of such vehicles," Lordstown said.

This sounds like dire news unless someone (Chinese?) comes in and buys them penny's on the dollar.
 

·
Registered
Joined
·
2,983 Posts
Yup, somebody said, "production is hell!" :p
 
  • Like
Reactions: obermd

·
Administrator
Joined
·
21,102 Posts
Discussion Starter · #5 ·
I feel sorry for the employees who will lose their jobs. Maybe Geely will buy them like they did Volvo and A123 battery?
 

·
Administrator
Joined
·
21,102 Posts
Discussion Starter · #6 ·
Today the CEO and CFO resigned. The ship is sinking and they don't want to be the captain and first mate when it goes under?
 

·
Registered
Joined
·
2,983 Posts
Yeah, do you put more money in or do you throw away hundreds of millions of dollars (I read a 645 million dollar figure but might be more total).
 

·
Administrator
Joined
·
21,102 Posts
Discussion Starter · #8 ·
The New York Times is saying founder and CEO Steve Burns left because he made "inaccurate" statements about pre-orders for the truck.

Since then, a recent SEC filing by the company said, "we have no binding purchase orders or commitments from customers". 48 hours later new Lordstown president Rich Schmidt claimed that the company has "firm orders" for its Endurance production in 2021 and 2022. Soooo, does that mean Schmidt was using, uh "alternative facts"? False SEC statements can land you in jail or carry big fines so I'm going with Schmidt is spinning at a minimum.

The company is now saying production starts in September. Time will tell if they can start making the Endurance truck in 3 months time. If you feel lucky that the company will last as long as the warranty, there is still time to get your order in! I hope they do make it, but it looks like a long shot given they are in financial hell, management hell, and probably production hell.

Anyone seen the HBO documentary on the Twentieth Century Motor Company? The Lady and the Dale is pretty fascinating.
Launching a car company in the '70s was a losing proposition, but director Nick Cammilleri thinks Carmichael might have thrived in today’s startup world.

 

·
Registered
Joined
·
1,782 Posts
Anyone seen the HBO documentary on the Twentieth Century Motor Company? The Lady and the Dale is pretty fascinating.
Launching a car company in the '70s was a losing proposition, but director Nick Cammilleri thinks Carmichael might have thrived in today’s startup world.
Yeah I watched it. I was interested in the car, but it seemed the documentary was more focused on transsexuals than transmissions. I got tired of all the cutesy animations, and the whole thing was about 3 hours too long.
 
1 - 9 of 9 Posts
Top