Lordstown Motors
Image by Reuters

Ohio-based Lordstown Motors released its first-quarter results on Monday, which reported a loss of $90 million and total available remaining cash of $203 million. The company also said its deal with Taiwanese technology firm Foxconn has still not closed and that Lordstown may not be able to meet its 2022 goals without the agreement. 

As part of the Lordstown-Foxconn deal, Foxconn would purchase Lordstown’s production facility for $230 million, and Lordstown said Foxconn would “operate the assets [Lordstown] continue[s] to own in the facility after closing.” The funding would, in turn, allow Lordstown to further the production of its electric Endurance truck. 

According to Lordstown’s filing with the Securities and Exchange Commission, the “current level of cash and cash equivalents are not sufficient to execute [its] 2022 business plan and achieve scaled production of the Endurance” due to high prices of raw materials and “the capital required to complete testing and validation.”

Unless Lordstown Motors is granted an extension, it must close the deal with Foxconn by the middle of May; otherwise, it will have to return Foxconn’s $200 million in down payments.

Lordstown’s SEC filing also cited legal actions that have been filed against the company, including several lawsuits filed against the company and its executives and directors for various allegations, including breach of contract, misappropriation of trade secrets, breach of fiduciary duties, and racketeering. 

The filing also noted Lordstown Motors had been served two subpoenas from the SEC related to investigations into its DiamondPeak-Legacy Lordstown merger and questions surrounding pre-orders of Lordstown’s vehicles.

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