Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Lordstown Motors Lower Premarket Amid Concerns over Survival

Published 2021-06-09, 07:08 a/m
Updated 2021-06-09, 07:08 a/m
© Reuters.

© Reuters.

By Dhirendra Tripathi

Investing.com -- Lordstown Motors (NASDAQ:RIDE) shares were lower in Wednesday’s premarket, a day after the company warned investors that it is close to running out of cash and may go out of business during the next year.

Shares of the electric truck maker fell over 2% ahead of the open, after slumping 16% on Tuesday and continuing to drop in after hours trading.

Lordstown disclosed Tuesday that it did not have enough funding to start full commercial production of its planned electric pick-up truck and warned there is now "substantial doubt" about its ability to stay in business over the next 12 months.

In an amended annual report the company said it had $259.7 million in cash on hand as of March 31, after posting a net loss of $125.2 million over the previous three months.

It said it's ability to stay in business "is dependent on its ability to complete the development of its electric vehicles, obtain regulatory approval, begin commercial scale production and launch the sale of such vehicles." It is seeking additional financing but warned that it could not guarantee its attempts to raise more capital would be successful.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.