![]() Lordstown says it has notified Foxconn that it believes the breach allegations in the notice are without merit. Foxconn says it will terminate the investment agreement if it’s not resolved within 30 days. The notice is due to Lordstown’s stock price falling below the minimum trade requirement of $1.00 for 30 consecutive trading days. On April 21, 2023, Foxconn sent a letter to Lordstown stating the company was in breach of the previous investment agreement after receiving a delisting notice from the NASDAQ stock exchange. Lordstown’s 8-K filing indicates Foxconn may be looking to part ways with the young EV start-up. Lordstown Endurance electric truck (Source: Lordstown) Lordstown faces bankruptcy with Foxconn backing out With the Foxconn deal falling through, the start-up says bankruptcy is a possibility. Lordstown has faced bankruptcy several times last year, yet the Taiwanese electronics manufacturer Foxconn has been there to back the EV start-up financially, with several investment rounds to revamp the program.Īccording to Lordstown’s SEC filing Monday, that may no longer be the case. High-growth companies like those in the electric vehicle market have seen their valuations crater, making it harder to access cheap funding through equity raises.Īlthough Lordstown claimed the initial batch of 500 Endurance trucks was out for delivery last November, the company voluntarily recalled them, halting production over quality issues. To make matters worse, over the past year, the Federal Reserve has raised interest rates at a pace not seen since the 80s. Many of the start-ups mentioned above have experienced similar financial hardships, with rising input costs and supply chain disruptions. Just send a message to to give us a heads up.Lordstown has faced an uphill battle in bringing its first electric model, the Endurance pickup, to the market since its founding in 2018.Īfter going public on the US NASDAQ exchange in 2020, Lordstown became one of the high-profile EV stocks alongside Canoo (GOEV), Arrival (ARVL), Nikola, Faraday Future (FFIE), Rivian (RIVN), Lucid (LCID), and more. Recalls also added to the company’s challenges, and statements from the company later revealed that only a very few Endurance pickup trucks have been sold.ĭon’t hesitate to contact us with news tips. Initial production started in September 2022, but by February 2023, the company announced that it was pausing the production and deliveries of the Endurance. The production of the Endurance has started, but it has seen its own fair share of delays as well. ![]() The company has also declared that it had seen 100,000 pre-orders for the Endurance from prospective customers, a claim that attracted the attention of “forensic financial research” firm Hindenburg Research. It should be noted that there was a time when the Endurance was expected to be a pioneer in the electric pickup truck segment, with Lordstown estimating that it could beat rivals like Ford and Rivian to market. That was already notably lower than the range of comparable pickup trucks like the Ford F-150 Lightning and the Rivian R1T.Īlso noteworthy is Lordstown’s fall from grace over the years. ![]() As could be seen in its review from Car and Driver, Lordstown was expecting a range of just about 200 miles for the vehicle. What is quite unfortunate about the Endurance is the fact that the vehicle already had conservative target specs to begin with. ![]()
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