Dire straits for Lordstown Motors as CEO leaves, cash wears thin
Cash-strapped and with an unexpected shuffle of senior management, the start-up looks to be in crisis management mode. By Freddie Holmes
Lordstown Motors had planned to bring its first fully electric pick-up trucks to US buyers by the end of September. That production milestone now looks increasingly unlikely as top executives jump ship and funding issues bring the future of the company under question.
The start-up has warned that it is so cash-strapped that it could go bankrupt within the next 12 months. A company statement on 8 June noted that there was “substantial doubt” about whether it would be able to stay in business, and that it would be seeking additional funds from outside investors.
Just days before, the company was cautioned for violating stock market rules when a quarterly earnings report had not been filed with the Securities and Exchange Commission (SEC) on time. The company apologised in a mistyped press release on 4 June, advising that the necessary form would be filed “as soon as soon as [sic] possible.”
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