The company is feuding with partner Foxconn, which owns about 19 percent of Lordstown, over funding support tied to the automaker’s share price.
“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 substantial 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 United States Bankruptcy Code,” Lordstown said.
The automaker also is running into issues producing its Endurance electric pickup.
“Due to the production delays from early January to mid-April 2023, the failure to identify a strategic partner for the Endurance, and extremely limited ability to raise capital in the current market environment, we anticipate production of the Endurance will cease in the near future,” the company said.
Faraday Future saw its cash troubles continue to grow in the first quarter. The company has about one month of cash left compared with a little more than three months’ worth at the end of last year, according to a Thursday, May 11, SEC filing.
Other startups facing cash woes include Canoo, which had about two months of cash on hand at the end of 2022, and Workhorse Group, which had over a year’s worth. Both are scheduled to report results Monday, May 15.
