Money-strapped Lordstown might faucet the brakes on Endurance manufacturing


(Reuters) -Lordstown Motors on Thursday reported a steep fall in its money reserves and warned it may need to cease making its Endurance electrical pickup truck within the close to future until it finds a associate.

The cash-strapped EV maker had earlier this week stated it is likely to be compelled to file for chapter, citing uncertainty over a $170 million funding cope with its main shareholder Foxconn.

Lordstown, named after the city in Ohio the place it’s primarily based, stated on Thursday it was in talks with the Apple Inc provider however was but to succeed in a deal.

In Might 2022, Lordstown Motors accomplished a deal to promote its Ohio manufacturing facility for $230 million to Foxconn, excluding property such because the hub motor meeting and battery pack traces.

Foxconn will make Fisker Inc’s PEAR electrical compact automobile on the Ohio manufacturing facility beginning subsequent yr, the EV startup has stated.

Lordstown Motors had money and money equivalents of $108.1 million as of March 31, down from $203.6 million a yr earlier.

Shares have been little modified, having hit a report low of 25 cents on Monday.

Lordstown Motors and its EV friends have been struggling as entry to capital tightens from rising rates of interest and mounting financial uncertainty.

The corporate had resumed manufacturing of Endurance in March after a pause in February to deal with high quality points.

It stated in February that it had made solely 37 vehicles on the market and recalled 19 autos delivered to prospects or getting used internally.

Internet loss ballooned to $171.1 million within the quarter ended March 31, the corporate stated on Thursday, from $89.6 million a yr earlier.

Lordstown Motors had beforehand warned of considerable doubt about its skill to proceed as a going concern, citing liquidity points.

(Reporting by Tiyashi Datta and Akash Sriram in Bengaluru; Modifying by Anil D’Silva and Sriraj Kalluvila)

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