Lordstown Motors, a start-up that aims to make electric pickups, said Monday that it would “at best” only make 50 percent of the vehicles it had hoped for earlier this year, unless it is able to raise additional capital.
“What we’re saying is that if we don’t get funding, we might only make half what we thought we were,” Lordstown’s CEO Steve Burns said during a conference call.
Mr Burns said the company is still on track to start manufacturing trucks in September.
Lordstown has had talks with some strategic investors who could pump money into the company, he said, and it has attempted to borrow money using its works or other assets as collateral.
He also said the company is considering borrowing from a federal government program to help electric vehicle development, but it is unclear whether there are any funds left to borrow.
Lordstown could produce up to 2,200 trucks by the end of the year if funded, Burns said. Without additional capital, it would probably make less than 1,000.
Mr. Burns had hoped Lordstown would be the first to produce an electric pickup truck for commercial fleets such as large construction and mining companies, but he will soon face stiff competition. Ford Motor unveiled an electric version of its F-150 pickup last week, which is slated to hit stores next spring.
Lordstown gained attention for buying an auto plant in Lordstown, Ohio that General Motors had closed. It was also celebrated once by former President Donald J. Trump for saving manufacturing jobs.
Last year, it became a public company by merging with a special-purpose acquisition vehicle, a company founded with cash from investors, and a public listing. Several other electric vehicles and related companies have gone public in the past few months through similar mergers to capitalize on investors’ desire for the next Tesla.
Lordstown, which is under investigation by the Securities and Exchange Commission, said it lost $ 125 million in the first quarter of 2021 but ended the period with $ 587 million in cash.
After the news of the manufacturing prospect was released, Lordstown’s stock fell more than 9 percent to just under $ 9 in over-the-counter trading. The stock briefly traded at around $ 30 last year.