Embattled electric truck maker Lordstown Motors has revealed that there’s “substantial doubt” about its ability to stay in business through the end of the year.
Lordstown, which is backed by General Motors, revealed a going-concern notice Tuesday in a regulatory filing that amended its annual report.
Going-concern notices can warn investors of threats to their survival unless additional funding or other solutions to the uncertainty are found.
The two-year-old company has been struggling to convert a former GM plant in Ohio to produce its electric pickup trucks. It has previously said its first model, called the Endurance, will start production in September.
“The company believes that its current level of cash and cash equivalents are not sufficient to fund commercial scale production and the launch of sale of such vehicles,” Lordstown said in the filing with the Securities and Exchange Commission.
“These conditions raise substantial doubt regarding our ability to continue as a going concern for a period of at least one year,” the company added.
Lordstown has previously said its first model, called the Endurance, would start production in September.AFP via Getty Images
The company went public last year through a deal with a special-purpose acquisition company, or SPAC, that