EV Truck Startup Lordstown Motors Opens Factory to Win Back Investors
Andrew Koole
Oct 14, 2021 · 3 min read
Electric vehicles are the product of the moment in the auto industry. Every major car brand is in the process of transitioning its lineup to battery power, and startup companies are popping out of the woodwork.
But jumping on the EV bandwagon doesn’t guarantee success. Lordstown Motors, a company based in Ohio, has lost two-thirds of its value since February after a number of prototype mishaps and financial statement discrepancies led its founder and chief financial officer (CFO) to step down.
Despite its struggles, the company continues to move forward, drawing in $400 million in investments after a demonstration of its concept trucks in its facility near the Pennsylvania border. The influx of cash could be enough to keep Lordstown in the ring with rival EV-only brands.
Lordstown Motors is looking to win back investors.
A brief history of Lordstown Motors
Lordstown began as a saving grace for autoworkers from its namesake Ohio city. After General Motors (GM) closed its facility there, many citizens worried that their jobs were gone forever. But hope came when Cincinnati entrepreneur Steve Burns chose to make the town the home of his new EV venture, Lordstown Motors, and bought the facility in 2019.
But since then, the company has struggled to get off the ground. The New York Times says production on the Endurance, the first truck made by Lordstown, was supposed to begin in September but still hasn’t started.
On top of that, an in-house investigation released in June showed that statements made by Burns about pre-orders were inaccurate. The report from the company’s board resulted in the resignation of Burns and his CFO, Julio Rodriguez.
Government regulators have launched their own investigation since then, but Lordstown Motors is moving on with new leadership, new investment, and motivation to get up and running. The Times says the company expects to build at least 1,000 trucks by the end of the year.
Other companies building electric trucks
While the electric revolution started off with cars like Smarts, Chevy Bolts, and Teslas, pickup trucks are quickly becoming the next major segment to use a plug-in power source.
The length of pickup bodies lends the space needed for the large battery modules automakers are designing to increase the range of EVs. Established truck brands like Ford, GMC, and Ram all have fully electric trucks set to launch in the next two years.
Lordstown isn’t the only new brand vying for space in the new market, either. Rivian, Bollinger, and Canoo are just a few EV startups planning to offer pickup trucks to consumers. Tesla’s truck has been in the works for almost four years and is expected to launch in 2022.
How to buy an electric truck
Whether you go with an established brand like Ford’s upcoming F-150 Lightning or you choose a truck from a new company like Lordstown, there are a few things to consider before buying an electric pickup.
First, if you want to avoid premium dealership garage fees, you need to find an electric car mechanic. You also need to get a charger for your garage and look for the charging stations in your area. Lastly, make sure to look into the tax incentives and insurance discounts for electric cars in your state.
If you want cheap car insurance quotes for electric trucks, go to Jerry. A licensed broker that offers end-to-end support, the free Jerry app gathers affordable quotes, helps you switch plans, and even cancels your old policy for you.
