Electrical vehicle maker Lordstown Motors says it may shut down its operations a year from now as the company is trying to secure its finances to start full production of its electric pickup truck. The funds of $587 million it had at the end of March, according to the company, isn’t enough to venture into commercial production and sales of full-size electric pickup.
The company’s CEO Steve Burns, on May 24 said that if the financial situation continues to be the same the company will have to cut its operations to 1000 vehicles unless the company could raise a new capital amount.
According to the SEC filing of the company, the management is currently evaluating new sources to raise capital, which includes options such as borrowing amount from its partners or issuing more equity. However, the filing also mentioned that the company has no assurance that such funds will be made available on favorable conditions or at all.
On the current financial ground, Burns has assured investors that Lordstown Motors will at least have $50 million in cash by the end of 2021.