Lordstown Motors Is Hunting for $150 million in Order to Ramp Up EV Production
Updated on Jun 3, 2022 · 3 min read
Lordstown may sound like a Game of Thrones location, but it’s actually a luxury brand that might not sound familiar. They’re also asking investors for a cool $150 million in order to continue to keep pace with a raging EV market. Lordstown Motors could be in trouble with share prices dropping and production expectations looking uncertain.
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The Lordstown Motors Endurance EV is slowing the company down
It seems that Lordstown Motors is having some money problems, as U.S. News and World Report seems to indicate. Despite selling $230 million worth of assets to the Taiwanese company Foxconn, Lordstown Motors is still looking for financial assistance in order to produce more of its EVs.
In particular, its Endurance EV pickup has been reserved by thousands of customers, and Lordstown has to deliver those EVs as promised. However, the $230 million dollar sale to Foxconn may have set the company back, considering that the sale in question meant that Lordstown Motors lost a manufacturing location.
Why does Lordstown Motors need so much money to increase production?
But as to why Lordstown Motors needs so much money, it’s not certain, other than the company is claiming that they simply need more cash in hand in order to successfully produce, test, and ship their Endurance trucks to customers. But in Lordstown Motors’ defense, the company has reported having been heavily affected by supply chain issues and high material costs, of which lithium is likely the main culprit.
Lordstown Motors lost over $300 million in cash over the past year
Lordstown Motors hasn’t had a good year. The same U.S. News report also listed that the carmaker has a current cash balance of $204 million, as opposed to the $587 million it had during the same time period last year. Though it’s not ideal, it’s probably not time to start worrying about Lordstown Motors just yet. With the sale of their Ohio manufacturing facility putting $230 million back in their pockets, there’s a high likelihood that they’ll get the money they need.
Another corporation will likely be willing to invest in the company and Lordstown Motors will hopefully be able to bounce back from the frustrating supply chain setbacks of the past year. And then, perhaps we’ll start seeing their Endurance truck on the road soon.
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