- Lordstown Motors Corp (NASDAQ:RIDE) CFO acknowledged that it would be difficult to sustain the business for at least another year after it sold its factory to raise cash, the Wall Street Journal reports.
- Adam Kroll found it challenging to sustain pending more funding and a surge in market valuation.
- Lordstown needs to raise an additional $150 million in the capital before the 2022 end to execute its plans of building about 500 vehicles.
- Lordstown looks to have at least $75 million - $100 million in cash on its balance sheet at the 2022 end.
- Lordstown could raise funds through a public or private offering to institutional investors.
- Analysts remain skeptical about the company’s outlook, pointing to issues including fundraising and changing investor sentiment.
- Lordstown, which aims to launch its first vehicle this year and does not generate any revenue yet, issued a going-concern warning in June 2021.
- Lordstown looks to crash testing the Endurance, its debut vehicle, with commercial production by the third quarter.
- Lordstown recently sold its Ohio factory for $230 million to Apple Inc (NASDAQ:AAPL) supplier Hon Hai Precision Industry Co Ltd (OTC:HNHPF), operating as Foxconn Technology Group.
- Foxconn will build the Endurance for Lordstown and has earmarked $100 million for their new joint venture.
- Price Action: RIDE shares traded higher by 0.88% at $2.29 in the premarket on the last check Tuesday.
- Photo via Wikimedia Commons
