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Lordstown now says there are “binding orders” during the first two years of production

Detroit-Lordstown Motors has placed “firm” and “binding” orders during the first two years of production of electric pickup trucks, the startup president said.

“Currently, there are enough orders for production in 21 and 22 years,” Richschmidt said at an event of the Automobile Press Association in Detroit. “These are solid orders for the last two years.”

“I don’t know the exact facts of that legal aspect, but it’s basically a binding and reaffirmed order made here in the last two weeks,” he added. “They are pretty solid and I think it’s a bright side or a conservative side.”

In the afternoon trading on the Nasdaq, Lordstown’s share price, which surged 15%, rose 7.8% to $ 9.98 per share.

In March, Lordstown’s stock price plummeted after an investment research firm. Hindenburg Research reveals that it was in a short position The company said it misunderstood consumers and investors about endurance truck pre-orders, which Rosetown initially said was worth $ 1.4 billion.

After that, the Ohio company said the order was not binding and the production was Half of what was expected, And on June 8, when warned of a lack of cash, it was disclosed in a regulatory filing, with no binding orders or commitments from customers. Risk as a going concern..

On Monday, Lordstown announced: Chief Executive Officer Steve Burns and his Chief Financial Officer have resigned And admitted that it exaggerates the quality of truck pre-orders.

America Securities and Exchange Commission asked the company Information about pre-ordering trucks. Schmidt declined to comment when asked for updates on the SEC’s investigation on Tuesday.

Hindenburg founder Nathan Anderson was not immediately asked for comment.

Schmidt also said Lordstown would seek additional funding from General Motors And other early investors. GM I own a small stock of startups.

“I am happy with my current relationship with LMC, but I am ready to listen to suggestions that are meaningful to both parties,” GM said in a statement.

The Rosetown plant can now be built at a rate of 20,000 units a year without additional investment and can be expanded beyond that level with additional funding, Schmidt said, and the company’s bank has $ 400 million. He added that there is.

Angela Strand, who took office on Monday after Burns resigned, said in an opening statement on the webcast that the company’s plans are to begin limited production of trucks in late September.

Endurance is Work truck From $ 55,000, according to Schmidt.

He suggested investors invest capital in Lordstown before starting production of the truck, and said the waiters “missed a big jump.”

Ford Motor Co., Ltd. It also targets commercial customers with its electrical version F-150 truck, F-150 Lightning, Will be released next spring. The “commercial base” version starts at just under $ 40,000 before tax credits, and the XLT model, which matches the best-selling gas version, starts at around $ 53,000.

Lordstown now says there are “binding orders” during the first two years of production

Source link Lordstown now says there are “binding orders” during the first two years of production

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