This company designs and manufactures electric vehicles that are used for work purposes.
Lordstown Motors has reported that it does not have enough money to go into vehicle production and may not have the ability to continue as a going concern. The company currently has a number of lawsuits against it. The share price fell 16.2% yesterday.
Public in October via a SPAC and 8 months later they realise they might not have enough cash. This doesn’t pass the smell test to me.
Should be delisted. Disgrace.
This looks like another case of fake it until you make. This was already a heavily shorted stock - someone is going to have to value their IP (what ever they have) or the Lordstown plant (that GM almost gave away) to save this one from chapter 11.
The whole EV start up scene is riddled with risk. The industry is unbelievably competitive and the liklihood is that very few of these guys will survive. Proterra are pretty much the only ones who even have a product on the market.
Maybe SPACs are just bullshit. The electric vehicle market has been so frothy that fraud is a good plan - see also - Nikola Founder Trevor Milton Resigns After Short-Seller’s Fraud Accusations
Obviously this run of terrible news will turn them into a 10x meme stock, which is how the markets work nowadays.
Still trading up 9% on the month! And they say the markets are rational!
They have no money, no production line, no CEO & no CFO.
Not the end of this sorry saga it seems.
No it isn’t. Heard on the WSJ podcast this morning that a number of their board, including the CFO, sold shares in early Feb before they announced their results.