Lordtown Motors reported a sharp drop in its cash reserves Thursday and warned it may have to stop producing them Resistence electric pickup truck in the near future unless you find a partner.
The cash-strapped electric vehicle maker had it earlier this week he said he may be forced to file for bankruptcyciting uncertainty over a $170 million investment deal with its major shareholder Foxconn.
Lordstown, named after the Ohio city where it’s based, said Thursday it was in talks with supplier Apple Inc but had not yet reached an agreement.
In May 2022, Lordstown Motors closed a deal to sell its Ohio factory for $230 million to Foxconn, excluding activities such as hub motor assembly and drums packaging lines.
Foxconn will do fisker Inc’s PEAR compact electric car at Ohio factory starting next year, the EV startup said.
Lordstown Motors had cash and cash equivalents of $108.1 million as of March 31, down from $203.6 million a year ago.
Shares were little changed, having hit an all-time low of 25 cents on Monday.
Lordstown Motors and its EV peers have struggled as access to capital narrows amid rising interest rates and growing economic uncertainty.
The company had resumed production of the Endurance in March after a hiatus in February to address quality issues.
In February, he said he’d only made 37 of them trucks for sale AND remembered 19 vehicles delivered to customers or in internal use.
Net loss increased to $171.1 million in the quarter ended March 31, the company said Thursday, from $89.6 million a year earlier.
Lordstown Motors had previously warned of substantial doubts about its ability to continue as a going concern, citing cash flow problems.
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