Lordstown Motors Lower Premarket Amid Concerns over Survival

SourceYahoo News
SectorTransport
CountryGulf

Oops!Something went wrong.Please try again later.June 8, 2021, 11:15 PM·1 min readOops!Something went wrong.Please try again later.

By Dhirendra Tripathi

Investing.com — Lordstown Motors (NASDAQ:RIDE) shares were lower in Wednesday’s premarket, a day after the company warned investors that it is close to running out of cash and may go out of business during the next year.

Shares of the electric truck maker fell over 2% ahead of the open, after slumping 16% on Tuesday and continuing to drop in after hours trading.

Lordstown disclosed Tuesday that it did not have enough funding to start full commercial production of its planned electric pick-up truck and warned there is now “substantial doubt” about its ability to stay in business over the next 12 months.

In an amended annual report the company said it had $259.7 million in cash on hand as of March 31, after posting a net loss of $125.2 million over the previous three months.

It said it’s ability to stay in business “is dependent...read more...