Electric vehicle startup Lordstown Motors said Tuesday it does not have enough money to start commercial production and runs the risk of failing as a business, sending its stock tumbling.
The company on Tuesday amended its annual report with the Securities and Exchange Commission to say in one year it may no longer function as “a going concern.”
The company said that with its current cash and cash equivalents of $587 million as of the end of the first quarter, it did not have enough funding to launch the Endurance, an electric pickup truck geared toward commercial operators.
“These conditions raise substantial doubt regarding our ability to continue as a going concern,” the company said in the filing.
Lordstown said it was attempting to find more funding but could not guarantee it would be successful. Its shares plunged 16 percent to close at $11.22 and continued falling in after-hours trading.
Lordstown Motors first attracted attention in 2019 when it took over a former General Motors plant and promised to hire 400 workers to build electric vehicles there. President Donald Trump had lambasted GM after it closed the plant in Ohio, a politically important state in the Midwest.