Lordstown Motors has had a rough couple of years.
The Ohio-based automaker is now expecting production of its introductory pickup truck, the Endurance, to end “in the near future” as it is seeking additional capital from future investors and partners.
Just days ago, it announced that its partnership with Foxconn could fall through after the company sent a letter to Lordstown stating that it was accusing the automaker of breaching its Investment Agreement “due to its previously disclosed receipt of a notice from the Nasdaq Stock Market LLC indicating that the Company was no longer in compliance with the $1.00 minimum bid price requirement for continued listing on The Nasdaq Global Select Market.”
Foxconn shares are trading at $0.36, down over 22 percent this week alone. Over the past year, shares have sunk $1.72, over 82 percent.
While Lordstown believes Foxconn’s allegations are “without merit,” it does not sound like it expects the deal to continue.
“To date, we have not identified a strategic partner for the Endurance. To the extent we do not identify such a partner, we anticipate that production of the Endurance will cease in the near future,” it said in a 10-Q filing.
Lordstown is continuing to attempt to resolve its relationship with Foxconn, and that could include a revised list of terms. However, it is attempting to round up capital at an extremely difficult financial time and said that it’s having an “extremely limited ability” to raise money in the current market.
Lordstown has only $108.1 million in cash on hand as of the end of Q1. At the end of last year, it reported that it had $221.7 million in cash and short-term investments, a roughly $18 million increase from what it had at the end of Q3.
It ended 2022 with only three deliveries of the Endurance pickup.
Disclosure: Joey Klender is not a Lordstown or Foxconn investor.