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According to the latest report, Lordstown Motors has gone ahead and made an alarming announcement for its stakeholders and stock investors. Lordstown Motors is an electric truck startup company that had claimed to be very promising for its stakeholders, investors, and potential consumers.
The electric truck startup has just gone ahead and reported that the statement in regards to the company having firm orders is not correct. The company has clarified that it has no such firm orders for electric trucks or vehicles.
According to the market observers, Lordstown Motors is now backtracking on its statement in regards to the firm orders it made recently. Just a week back, Lordstown Motors had claimed that it had received a large number of firm orders for the production of its vehicles.
The firm had assured its stakeholders last week that it had enough received enough orders for its vehicles. The company revealed that the number of committed orders they have received is enough to get the company through the year 2022.
The company had claimed that the orders would have the company produce a large number of vehicles throughout the year 2022.
The name of the company “Lordstown” was chosen by its founders after the Ohio factory that General Motors used to own in the past. However, General Motors later pulled out from the particular factory and Lordstown took it over.
After the official launch of Lordstown Motors, it started focusing on the production of Endurance. Endurance was a pickup truck that was going to be from the electric vehicle family. The production of the trucks was mainly meant to be carried out in the form of fleet sales.
Following the company’s announcement of confirmed orders, the CEO and CFO of Lordstown resigned from their posts. The reports confirm that both executives left their positions on Monday, June 7, as they had doubts about the viability of the company’s business.
However, on Tuesday, June 8, Richard Schmidt, the president at Lordstown went ahead and made claims around the confirmed orders. In the statement, Schmidt even confirmed that the company had enough cash to operate until May of 2022.
On top of that, the company had enough binding orders that would keep the company occupied until the end of 2022 for producing electric trucks.
However, on Thursday, June 17, 2021, Lordstown Motors clarified that the statements made by Schmidt were incorrect. This information was shared by Lordstown Motors while filing the company’s report at the Securities and Exchange Commission.
From the beginning of the year until now, the shares of the company have taken a huge hit. After the clarification provided by Lordstown Motors on Thursday, the company’s share prices dropped 4%. However, from year to date, the stock prices of Lordstown Motors have experienced a 50% drop.
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