Lordstown Motors Corp (NASDAQ: RIDE) CFO acknowledged that it would be difficult to sustain the business for at least another year after it sold its factory to raise cash, the Wall Street Journal reports.
Adam Kroll found it challenging to sustain pending more funding and a surge in market valuation.
Lordstown needs to raise an additional $150 million in the capital before the 2022 end to execute its plans of building about 500 vehicles.
Lordstown looks to have at least $75 million - $100 million in cash on its balance sheet at the 2022 end.
Lordstown could raise funds through a public or private offering to institutional investors.
Analysts remain skeptical about the company’s outlook, pointing to issues including fundraising and changing investor sentiment.
Lordstown, which aims to launch its first vehicle this year and does not generate any revenue yet, issued a going-concern warning in June 2021.
Lordstown looks to crash testing the Endurance, its debut vehicle, with commercial production by the third quarter.
Lordstown recently sold its Ohio factory for $230 million to Apple Inc (NASDAQ: AAPL) supplier Hon Hai Precision Industry Co Ltd (OTC: HNHPF), operating as Foxconn Technology Group.
Foxconn will build the Endurance for Lordstown and has earmarked $100 million for their new joint venture.
Price Action: RIDE shares traded higher by 0.88% at $2.29 in the premarket on the last check Tuesday.
Photo via Wikimedia Commons
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