Electric truck startup Lordstown Motors Corp. disclosed that it doesn’t have sufficient funds to launch a full commercial production and has doubts regarding whether it can continue as a going concern through the end of the year.
The disclosure Tuesday marks the latest difficulty for Lordstown Motors, one of several electric-vehicle and battery startups that went public last year through reverse mergers with special-purpose acquisition companies, or SPACs.
Lordstown Motors amended its annual report to include the going-concern notice, which can flag issues with survival for businesses. The warning comes as new challenges emerge for the two-year-old company that is trying to convert a former General Motors Co. plant in Ohio to manufacture electric pickup trucks. It has stated that its first model, the Endurance, will launch production in September.
A spokesman for Lordstown Motors stated that the company isn’t moving back its September target for the start of production and hopes to increase more capital, possibly through asset-backed financing or a government loan program. He declined to comment on why an ongoing concern wasn’t added in the company’s original annual report filed in March.