Lordstown Motors has signaled that Endurance EV truck production could end. Here's how this crisis unfolded.
. But it also has to be realistic about the chances of market success of the Endurance, currently occupying production space, which during its long gestation period saw several electric pickup competitors enter production and will soon see more.For its part, Lordstown has cited the high cost and availability of materials in producing the Endurance as one of the headwinds it faces, among others, including research and development costs incurred as a result of parts issues.
The company has openly stated that Endurance production could soon cease, even noting that it has revised its estimate of the useful life of its manufacturing assets. "If we are unable to resolve our dispute with Foxconn in a timely manner on terms that allow us to continue operating as planned, identify other sources of funding, identify a strategic partner, and resolve our significant contingent liabilities, we may need to further curtail or cease operations and seek protection by filing a voluntary petition for relief under the Bankruptcy Code," Lordstown also cautioned in the filing.
The company plans to vote on implementing a reverse stock split at its annual stockholder meeting on May 22. This tactic could buy it some time on Nasdaq, but it is unlikely to address underlying production and marketing issues as well as larger trends in the EV sphere, namely the rising costs of components and a sudden influx of competitor models from much larger automakers that could also cater to fleets in addition to private buyers.
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