There’s worse news about Lordstown Motors.Following some volleys of bad Mojo Ends with the resignation of senior management, EV startup notified the Securities and Exchange Commission (SEC) on Thursday that there are no binding purchase orders or commitments.
That’s not what the company said a few months ago. Hell, that wasn’t even what it said earlier this week when President Richschmidt told the Automobile Press Association that the company had enough orders to support two years of production. Lordstown is worried that the world will not be long-lived, as the ability to sell cars is somewhat related to the long-term success of automakers.
It’s unclear if the company will break its promise to offer all-electric endurance pickups by September, but automakers (including those with a reputation) have a habit of delaying their debut. This is especially true for EV startups, which are basically unavoidable among startups that never get going — It looks like Lordstown is heading..
These SEC filings were incredibly terrible, even though Schmidt was trying to keep things smooth with investors. Last week’s submission revealed that the aspiring automaker probably didn’t have enough capital to start production as planned. There was even a claim that there may not be enough fabric to keep it working. However, the company, in particular, merged with DiamondPeak Holdings (special purpose acquisition company) to enter NASDAQ and perform an IPO.
Thursday’s SEC document provided more disturbing information. After explaining the importance of marketing strategies for fleet management companies, he said he had signed a purchase agreement to “establish conditions for potential future purchases and other cooperation.”
Next, I explained the general rules they operate.
・ Period of 3 to 5 years;
-Designation of Lordstown Motors as a priority supplier.
· Ordering procedures, including forecasting, confirmation, status, and cancellation procedures.
・ Down payment condition, usually 5 [percent] Down 90 days before the requested delivery date.
-Billing, shipping and payment terms.And
• Other customary conditions, including warranty, compensation, use of intellectual property, insurance and confidentiality conditions.
These vehicle purchase agreements typically include a planned purchase schedule that spans three to five years, and either party is free to terminate with 30 days notice. They do not promise counterparties to buy vehicles, but believe they provide us with an important indicator of endurance demand.
To clarify recent remarks by executives at the Automotive Press Association online media event on June 15, these vehicle purchase contracts provide an important indicator of demand for durability, but these contracts are binding. It does not represent a strong purchase order or other solid purchase agreement.
The last paragraph is the most important because it is the paragraph that the company admits to lying in effect. I think the term “binding” can be used as a semantic defense. But this remains a bad situation, as automakers have nothing to really show themselves.Apparently nothing binding If the order, it leases the intellectual property needed to pick up from Workhorse, one of the recently burned prototypes, and GM cannot and must repay the $ 40 million loan. You have the option to repurchase all transferred assets of the facility and factory. Throw away the ship.
Meanwhile, Lordstown invited investors, analysts and journalists to the factory next week (which installed a large solar array this year) to tour the premises and talk about trucks. However, the SEC filing states that the company will postpone its annual shareholders meeting until August 19. This is a month behind schedule and can be a bad sign.
[Images: Lordstown Motors]
Another unpleasant SEC filing emerges
Source link Another unpleasant SEC filing emerges