Lordstown Motors is seeking an additional $150 million in order to put its promised all-electric Endurance pickup truck into production.
Not too long ago, Lordstown showed quite a lot of promise but things haven’t gone well over the last 12 months. Not only has General Motors sold off its entire stake in the company but Lordstown was also forced to sell its factory for $230 million to Foxconn back in late 2021. Despite that deal now almost being finalized, the automaker needs additional funds.
The company now says it needs the additional capital to scale up production of its pickup while also completing testing and purchasing materials and vehicle components. Lordstown confirmed in its latest financial report that it has a cash balance of $204 million, down from $587 million a year earlier. It has also received $200 million in down payments for its assets from Foxconn and is expected to complete the deal by May 18, Reuters reports.
“We’ve had constructive discussions with Foxconn,” Lordstown chief executive Dan Ninivaggi commented. “It’s a complex deal. It’s taking a little bit longer than we expected. The fact that Foxconn agreed to extend the repayment deadline is a good sign.”
The electric vehicle startup purchased its Ohio plant from General Motors back in 2019 and the deal with Foxconn has provided it with valuable capital. What’s more, the two have also agreed for Foxconn to manufacturer the Lordstown Endurance pickup but evidently, this relies on additional capital being raised. The deal is also supposed to see the companies co-design and develop commercial fleet vehicles for the American and international markets. A pre-existing deal between Foxconn and Fisker will also see the electric PEAR built at the same factory.
Lordstown is hopeful that it will begin production of the Endurance in the third quarter of this year.